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Business, 26.11.2019 05:31 jolleyrancher78

Consider the following information on stocks i and ii:

state of probability of rate of return if state occurs
economy state of economy stock i stock ii
recession .27 .030 ? .22
normal .62 .330 .14
irrational exuberance .11 .190 .42
the market risk premium is 11.2 percent, and the risk-free rate is 4.2 percent.

calculate the beta and standard deviation of stock i. (do not round intermediate calculations. enter the standard deviation as a percent and round both answers to 2 decimal places, e. g., 32.16.)

stock i
beta
standard deviation %
calculate the beta and standard deviation of stock ii. (do not round intermediate calculations. enter the standard deviation as a percent and round both answers to 2 decimal places, e. g., 32.16.)

stock ii
beta
standard deviation %
which stock has the most systematic risk?

stock i
stock ii

which one has the most unsystematic risk?

stock i
stock ii

which stock is "riskier"?

stock i
stock ii

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Answers: 2

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Consider the following information on stocks i and ii:

state of probability of rate of...
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