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Financial Management: Expected Return and Standard Deviation

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Consider the following information:

Rate of Return If State Occurs
State of Probability of
Economy State of Economy Stock A Stock B
Recession 0.20 0.05 − 0.20
Normal 0.57 0.08 0.09
Boom 0.23 0.13 0.26

Calculate the expected return for the two stocks. (Round your answers to 2 decimal places. (e.g., 32.16))
Stock A = ?
Stock B = ?

Calculate the standard deviation for the two stocks. (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16))
Stock A = ?
Stock B = ?

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Rate of Return If State Occurs
State of Probability of
Economy ...

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