Rate of return if state occursnbspcalculate the expected


Rate of Return if State Occurs

State of Economy                 Probability of State of Economy Stock A                  Stock B

Recession                                             0.10                                                 0.06                     -0.20

Normal                                                  0.50                                                 0.08                      0.14

Boom                                                    0.40                                                 0.14                      0.33

Required:

(a) Calculate the expected return for Stock A. (Do not round your intermediate calculations.)

(b) Calculate the expected return for Stock B. (Do not round your intermediate calculations.)

(c) Calculate the standard deviation for Stock A. (Do not round your intermediate calculations.)

(d) Calculate the standard deviation for Stock B. (Do not round your intermediate calculations.)

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Rate of return if state occursnbspcalculate the expected
Reference No:- TGS02153817

Expected delivery within 24 Hours