Consider the following information:
Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Recession 0.17 0.06 (-.17) Normal 0.50 0.09 0.12 Boom 0.33 0.14 0.29
Calculate the expected return for the two stocks. (Round your answers to 2 decimal places. (e.g., 32.16))
Expected return Stock A % Stock B %
Calculate the standard deviation for the two stocks. (Do not round intermediate calculations and round your final answers 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 | 0.17 | 0.06 | (-.17) | ||||||
| Normal | 0.50 | 0.09 | 0.12 | ||||||
| Boom | 0.33 | 0.14 | 0.29 | ||||||
| Calculate the expected return for the two stocks. (Round your answers to 2 decimal places. (e.g., 32.16)) |
| Expected return | |
| Stock A | % |
| Stock B | % |
| Calculate the standard deviation for the two stocks. (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) |
| Standard deviation | |
| Stock A | % |
| Stock B | % |
Related questions
| Consider the following information: |
| Rate of Return If State Occurs | |||||||||
| State of | Probability of | ||||||||
| Economy | State of Economy | Stock A | Stock B | ||||||
| Recession | 0.16 | 0.05 | ? | 0.16 | |||||
| Normal | 0.62 | 0.08 | 0.13 | ||||||
| Boom | 0.22 | 0.13 | 0.30 | ||||||
| Calculate the expected return for the two stocks. (Round your answers to 2 decimal places. (e.g., 32.16)) |
| Expected return | |
| Stock A | % |
| Stock B | % |
| Calculate the standard deviation for the two stocks. (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) |
| Standard deviation | |
| Stock A | % |
| Stock B | % |
Consider the following information:
| Probability of State | Rate of Return if State Occurs | ||||||||||
| Economy | of Economy | Stock A | Stock B | ||||||||
| Recession | .21 | .015 | â | .26 | |||||||
| Normal | .56 | .095 | .16 | ||||||||
| Boom | .23 | .150 | .39 | ||||||||
a. Calculate the expected return for the two stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
| Expected return | ||
| E(RA) | % | |
| E(RB) | % | |
b. Calculate the standard deviation for the two stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
| Standard deviation | ||
| ÏA | % | |
| ÏB | % | |
