Consider the following information: Calculate the expected return for Stock A. (

Question

Consider the following information:

  

  

Calculate the expected return for Stock A. (Do not round your intermediate calculations.)

  

Calculate the expected return for Stock B. (Do not round your intermediate calculations.)

  

Calculate the standard deviation for Stock A. (Do not round your intermediate calculations.)

  

Calculate the standard deviation for Stock B. (Do not round your intermediate calculations.)

(Click to select) 13.92% 10.36% 14.65% 15.23% 15.38%

I got a and b but no matter how many times I do the match I can't get an answer that matches for c and d. Please show me what to do so I can see what I am doing wrong.

Consider the following information:

Explanation / Answer

c) SD for stock A:

d) SD for stock B:

Return Probability X - Xbar (X - Xbar)^2 (X - Xbar)^2*Prob                 0.02              0.10              (0.08)              0.0061                 0.0006                 0.09              0.60              (0.01)              0.0001                 0.0000                 0.14              0.30               0.04              0.0018                 0.0005 Variance                 0.0012 SD (Sq root var) 3.43%

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