Question 2 (of 3) value 2.00 points Consider the following information: Rate of

Question

Question 2 (of 3) value 2.00 points Consider the following information: Rate of Return If State Occurs Probability of State of Economy State of Economy Recession Norma Boom Stock B - 20 Stock A 04 09 12 13 .3 a. Calculate the expected return for the two stocks. (Do not round intermediate calculat answers as a percent rounded to 2 decimal places. Omit the "%" sign in your resp Expected return for A Expected return for B 8.41% 9.1 |% b. Calculate the standard deviation for the two stocks. (Do not round intermediate calcula your answers to 4 decimal places.) Standard deviation for A for B Reterences Book & Resources

Explanation / Answer

The correct answer is :

A. Expected Return  for A = 8.4%

For B = 9.1%

B. Standard Deviation for A = 0.0314

For B = 0.2077

Notes:

For Stock B:

Probability A Expected Return ( Probability * Expected Return) 0.30 0.04 0.01 0.40 0.09 0.04 0.30 0.12 0.04 Expected Return   0.084000 Expected Return   % 8.4

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.