You are given the following information on two stocks BI and B2. The stock B1...
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Accounting
You are given the following information on two stocks BI and B2. The stock B1 performed well in slowdown as compared to B2. Both the shares are selling at Rs.90 per share. The estimated rupee return of the stock is given as follows
| economy behaviour | ||||
| high growth | low growth | stagnation | recession | |
| probability | 0.45 | 0.25 | 0.2 | 0.1 |
| return on B1 | 90 | 98 | 106 | 122 |
| return on B2 | 120 | 104 | 72 | 48 |
Calculate the expected return and risk in the following cases: 1. When you invested 5000 in B1
2. When you invested 5000 in B2
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