Calculate the expected return for stock

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Calculate the expected return for each stock. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

 

  Expected return
  Stock A  %  
  Stock B  %  

Calculate the standard deviation for each stock. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

 

  Standard deviation
  Stock A  %  
  Stock B  %  

Consider the following information:

 

    Rate of Return If State Occurs
  State of Probability of
  Economy State of Economy Stock A Stock B
  Recession   .22     .07   - .22  
  Normal   .52     .10     .07  
  Boom   .26     .15     .24  

Reference no: EM131030283

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