I just need the standard deviation for both. Based on the following information,

Question

I just need the standard deviation for both.

Based on the following information, the expected return and standard deviation for Stock A are percent and percent, respectively. The expected return and standard deviation for Stock B are percent and percent, respectively. (Do not include the percent signs (%). Round your answers to 2 decimal places. (e.g., 32.16))

Rate of Return if State Occurs   State of Economy Probability of State
of Economy Stock A Stock B    Recession 0.2               0.03               -0.17                Normal 0.6               0.09                 0.16                Boom 0.2               0.12               0.33             

Explanation / Answer

SD OF STOCK A AND B:

PROB(RETURN-EXP RETURN)(R-ER)

STOCK A:

0.2(3-8.4)(3-8.4)=5.83

0.6(9-8.4)(9-8.4)=0.22

0.2(12-8.4)(12-8.4)=2.6

5.83+0.22+2.6=8.65

SD OF STOCK A=SQUARE ROOT OF 8.65=2.94%

STOCK B:

0.2(-17-12.8)(17-12.8)=177.61

0.6(16-12.8)(16-12.8)=6.14

0.2(33-12.8)(33-12.8)=81.61

177.61+6.14+81.61=265.36

SD OF STOCK B =SQUARE ROOT OF 265.36=16.29%

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