The standard deviation on stock return

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Consider the following information about Stocks A and B: Rate of Return if State Occurs State of Probability of Economy State of Economy Stock A Stock B Recession 0.25 0.05 − 0.28 Normal 0.55 0.20 0.15 Irrational exuberance 0.20 0.14 0.48 The market risk premium is 8 percent, and the risk-free rate is 5 percent. (Round your answers to 2 decimal places. (e.g., 32.16)) The standard deviation on Stock A's return is percent, and the Stock A beta is. The standard deviation on Stock B's return is percent, and the Stock B beta is. Therefore, based on the stock's systematic risk/beta, Stock (Click to select)BA is "riskier".

Reference no: EM131568160

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