Calculating Returns and Standard Deviations LO 1 Consider the following information: Rate of Return if State Occurs State of Probability of State Economy of Economy Stock A Stock B
Recession .24 .030 -.29
Normal .59 .110 .19
Boom .17 .180 .42
Requirement 1: Calculate the expected return for the two stocks. (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e. g., 32.16).) Expected return E(RA) % E(RB) %
Requirement 2: Calculate the standard deviation for the two stocks. (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e. g., 32.16).) Standard deviation ?A % ?B %