Calculate the standard deviation of each stock

Reference no: EM131794766

Question: You are given the following information:

State of Economy	Return on Stock A	Return on Stock B
Bear	.105	-.048
Normal	.112	.151
Bull	.076	.236

Assume each state of the economy is equally likely to happen.

Calculate the expected return of each stock. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places (e.g., 32.16).)

Calculate the standard deviation of each stock. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places (e.g., 32.16).)

What is the covariance between the returns of the two stocks? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 6 decimal places (e.g., 32.161616).)

What is the correlation between the returns of the two stocks? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 4 decimal places (e.g., 32.1616).)

Reference no: EM131794766

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