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14. Consider the following information: Rate of...

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14. 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 -0.18 Normal 0.70 0.08 0.14 Boom 0.10 0.13 0.32 ________________________________________ Required: (a) Calculate the expected return for Stock A. (Do not round your intermediate calculations.) a. 8.22% b. 7.90% c. 8.69% d. 8.62% e. 8.30% (b) Calculate the expected return for Stock B. (Do not round your intermediate calculations.) a. 9.40% b. 9.33% c. 9.78% d. 9.87% e. 8.93% (c) Calculate the standard deviation for Stock A. (Do not round your intermediate calculations.) a. 1.97% b. 2.17% c. 2.15% d. 1.46% e. 2.07% (d) Calculate the standard deviation for Stock B. (Do not round your intermediate calculations.) a. 10.39% b. 15.29% c. 14.70% d. 15.43% e. 13.96%

 

Paper#10205 | Written in 18-Jul-2015

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