Calculate the standard deviation for the two stocks

Assignment Help Financial Management

Reference no: EM131328184

Consider the following information:

Rate of Return If State Occurs

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

Recession .25 .03 –.11

Normal .30 .10 .17

Boom .45 .12 .37

a. Calculate the expected return for the two stocks. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

Expected return for A %

Expected return for B %

b. Calculate the standard deviation for the two stocks. (Do not round your intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

Standard deviation for A %

Standard deviation for B %

Reference no: EM131328184

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