University Of Missouri-Kansas City Operations And Supply Chain Management Assignment Help - Stock return

Question - 1. Assume you have predicted the following returns for Stock A and B in four possible states of the
economy.
What is the expected return of each stock? Calculate the variance and standard deviation for Stocks
A and B.
State Probability Stock A Return Stock B Return
Expansion .15 22% 17%
Normal .50 15% 12%
Mild Recession .20 5% 2%
Recession .15 1% -2%

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