Consider the following information: State of Probability of State of Rate of Return If State Occurs Economy Stock A Stock B Economy Recession .17 .05 - .21 Normal .62 .09 .08 Boom .21 .16 .25 a. Calculate the expected return for Stocks A and B. (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 Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) a. Stock A expected return Stock B expected return b. Stock A standard deviation Stock B standard deviation % % % do do do do
Consider the following information: State of Probability of State of Rate of Return If State Occurs Economy Stock A Stock B Economy Recession .17 .05 - .21 Normal .62 .09 .08 Boom .21 .16 .25 a. Calculate the expected return for Stocks A and B. (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 Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) a. Stock A expected return Stock B expected return b. Stock A standard deviation Stock B standard deviation % % % do do do do
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Consider the following information: a. Calculate the expected return for Stocks A and B. (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 Stocks A and B. (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:
State of Probability of
State of
Rate of Return If State Occurs
Economy
Stock A
Stock B
Economy
Recession
.17
.05
- .21
Normal
.62
.09
.08
Boom
.21
.16
.25
a. Calculate the expected return for Stocks A and B. (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 Stocks A and B. (Do not round intermediate
calculations and enter your answers as a percent rounded to 2 decimal places, e.g.,
32.16.)
a.
Stock A expected return
Stock B expected return
b. Stock A standard deviation
Stock B standard deviation
%
%
%
do do do do
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