What is the expected return for stock a what is the


Given the following table, answer the questions:

               State of Economy                              Probability                           Possible Return for Stock A

               Boom                                  20%                                       16%

               Average                                70%                                       7%

               Recession                             10%                                       -5%

A. What is the expected return for Stock A?

B. What is the standard deviation of Stock A’s returns?

C. What is the coefficient of variation, and what does this mean?

D. Suppose Stock B has an expected return of 13%. What is the expected return of a portfolio if you have $3500 invested in A and $6500 invested in B?

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