Consider the following information: Rate of Return if State Occurs State of Economy Probability of State of Economy Stock...

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Finance

Consider the following information:

Rate of Return if State Occurs
  State of Economy Probability of State of Economy Stock A Stock B
  Recession 0.20 0.05 -0.21
  Normal 0.60 0.09 0.17
  Boom 0.20 0.14 0.32

Required:
(a)
Calculate the expected return for Stock A. (Do not roundyour intermediate calculations.)
(Click to select)9.20%8.85%10.91%11.03%8.32%

(b)
Calculate the expected return for Stock B. (Do not roundyour intermediate calculations.)
(Click to select)12.40%9.33%14.02%11.78%12.90%

(c)
Calculate the standard deviation for Stock A. (Do notround your intermediate calculations.)
(Click to select)2.86%2.02%3.00%2.71%2.97%

(d)
Calculate the standard deviation for Stock B. (Do notround your intermediate calculations.)
(Click to select)17.68%12.50%19.57%16.80%18.39%

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Transcribed Image Text

Consider the following information: Rate of Return if State Occurs State of EconomyProbability of State of EconomyStock AStock B Recession0.200.05-0.21 Normal0.600.090.17 Boom0.200.140.32 Required:(a)Calculate the expected return for Stock A. (Do not roundyour intermediate calculations.)(Click to select)9.20%8.85%10.91%11.03%8.32% (b)Calculate the expected return for Stock B. (Do not roundyour intermediate calculations.)(Click to select)12.40%9.33%14.02%11.78%12.90% (c)Calculate the standard deviation for Stock A. (Do notround your intermediate calculations.)(Click to select)2.86%2.02%3.00%2.71%2.97% (d)Calculate the standard deviation for Stock B. (Do notround your intermediate calculations.)(Click to select)17.68%12.50%19.57%16.80%18.39%

		Rate of Return if State Occurs
State of Economy	Probability of State of Economy	Stock A	Stock B
Recession	0.20	0.05	-0.21
Normal	0.60	0.09	0.17
Boom	0.20	0.14	0.32

(a)	Calculate the expected return for Stock A. (Do not roundyour intermediate calculations.)

	(Click to select)9.20%8.85%10.91%11.03%8.32%

(b)	Calculate the expected return for Stock B. (Do not roundyour intermediate calculations.)

	(Click to select)12.40%9.33%14.02%11.78%12.90%

(c)	Calculate the standard deviation for Stock A. (Do notround your intermediate calculations.)

	(Click to select)2.86%2.02%3.00%2.71%2.97%

(d)	Calculate the standard deviation for Stock B. (Do notround your intermediate calculations.)

	(Click to select)17.68%12.50%19.57%16.80%18.39%