Probability of an average economy

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Reference no: EM131517748

There is a 31.60% probability of a below average economy and a 68.40% probability of an average economy. If there is a below average economy stocks A and B will have returns of -9.50% and 11.20%, respectively. If there is an average economy stocks A and B will have returns of 5.30% and -5.40%, respectively. Compute the:

a) Expected Return for Stock A:

b) Expected Return for Stock B

c) Standard Deviation for Stock A

d) Standard Deviation for Stock B

Reference no: EM131517748

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