Consider the following information: Probability of State of Economy .24 .59 .17 Economy Recession Normal Boom Rate of Return if State Occurs Stock A Stock B .030 .110 .180 a. Expected return of A Expected return of B b. Standard deviation of A Standard deviation of B 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. -.29 .19 .42 % % % %

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.3: Measures Of Spread
Problem 26PFA
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Question
Consider the following information:
Probability of
State of Economy
.24
.59
.17
Economy
Recession
Normal
Boom
Rate of Return if State Occurs
Stock B
Stock A
.030
.110
.180
a. Expected return of A
Expected return of B
b. Standard deviation of A
Standard deviation of B
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.
-.29
.19
.42
Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2
decimal places, e.g., 32.16.
%
%
%
%
Transcribed Image Text:Consider the following information: Probability of State of Economy .24 .59 .17 Economy Recession Normal Boom Rate of Return if State Occurs Stock B Stock A .030 .110 .180 a. Expected return of A Expected return of B b. Standard deviation of A Standard deviation of B 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. -.29 .19 .42 Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. % % % %
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