There is a 43.67% probability of a below-average economy and a 56.33% probability of an average economy. If there is a below-average economy, Stocks A and B will have returns of 0.49% and -3.49% , respectively. If there is an average economy, Stocks A and B will have returns of 12.57% and 6.08%, respectively.
Compute the following for Stocks A and B:
a) Stock A Expected Return :
b) Stock B Expected Return :
c) Stock A Standard Deviation :
d) Stock B Standard Deviation :