"Consider the following information: Rate of Return if State Occurs State of Probability of Economy State of Economy Stock A Stock B
Recession .15 -02 -30
Normal .50 -10 .18
Boom .35 .15 . .31
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.) 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.) a. Stock A expected return Stock B expected return
b. Stock A standard deviation
Stock B standard deviation