There is a 29.20% probability of a below average economy and a 70.80% probability of an average economy. If there is a below average economy stocks A and B will have returns of -9.50% and 15.70%, respectively. If there is an average economy stocks A and B will have returns of 6.00% and 5.00%, respectively. Compute the: Expected Return for Stock A: Expected Return for Stock B: Standard Deviation for Stock A: Standard Deviation for Stock B: ** please try to make it easy to understand so I can learn from it, thank you

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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There is a 29.20% probability of a below average
economy and a 70.80% probability of an average
economy. If there is a below average economy stocks A
and B will have returns of -9.50% and 15.70%,
respectively. If there is an average economy stocks A
and B will have returns of 6.00% and 5.00%,
respectively. Compute the: Expected Return for Stock A:
Expected Return for Stock B: Standard Deviation for
Stock A: Standard Deviation for Stock B: ** please try to
make it easy to understand so I can learn from it, thank
you
Transcribed Image Text:There is a 29.20% probability of a below average economy and a 70.80% probability of an average economy. If there is a below average economy stocks A and B will have returns of -9.50% and 15.70%, respectively. If there is an average economy stocks A and B will have returns of 6.00% and 5.00%, respectively. Compute the: Expected Return for Stock A: Expected Return for Stock B: Standard Deviation for Stock A: Standard Deviation for Stock B: ** please try to make it easy to understand so I can learn from it, thank you
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