2. Consider the following two stocks. Stock "a" Probabilities (Pi) Pi = 24%...
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Consider the following two stocks. Stock "a" Probabilities (Pi) Pi = 24% Stock "b" 15% 9% Recession Normal Boom P2 = 32% 16% 15% P3 = 44% 10% 21% What is the expected return of each stock? Enter your answers as a percentage rounded to 2 decimal places. Do not enter the percentage sign in your answer. Ta = 4.16 IEWS: 4.16+0.01 = 5.64 :5.6440.01 Click "Verify" to proceed to the next part of the question. This question has 4 parts (i.e., you will be clicking "Verify" 4 times) Using the correct answers from the previous question, what is the standard deviation of each stock? Enter your answer as a percentage rounded to 2 decimal places. Do not enter the percentage sign in your answer. SDa = SD An investor is considering the purchase of Gryphon stock, which has returns given in the table below. Probability 0.13 Scenario Recession Normal Economy Boom Rate of Return 5% 11% 14% 10.42 0.45 Calculate the expected return and standard deviation of Gryphon. Round your answers to 2 decimal places. Enter your answers below. E(r) = Std. Dev. = %
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