Business
Business, 17.12.2019 04:31, tatumleigh04

Consider the following information:

probability of state rate of return if state occurs
economy of economy stock a stock b
recession .23 .025 – .28
normal .58 .105 .18
boom .19 .170 .41

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.)

answer
Answers: 2

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