Economy Recession Normal Boom Probability of State of Economy .24 .64 .12 Rate of Return if State Occurs Stock A Stock B .855 -.44 .135 .34 .330 .57 a. Calculate the expected return for the two stocks. Note: Do not round Intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. b. Calculate the standard deviation for the two stocks. Note: Do not round Intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. a. Expected return of A Expected return of B b. Standard deviation of A Standard deviation of B 96 % 96 96

Economy Recession Normal Boom Probability of State of Economy .24 .64 .12 Rate of Return if State Occurs Stock A Stock B .855 -.44 .135 .34 .330 .57 a. Calculate the expected return for the two stocks. Note: Do not round Intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. b. Calculate the standard deviation for the two stocks. Note: Do not round Intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. a. Expected return of A Expected return of B b. Standard deviation of A Standard deviation of B 96 % 96 96

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 14P

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