In: Finance
Consider the two assets A and B for which returns (%) under different conditions of economy are given as below.
Returns (%) |
|||
State of the Economy |
Probability |
Stock A |
Stock B |
Recession |
0.1 |
-16 |
-12 |
Above Average |
0.2 |
-3 |
4 |
Average |
0.4 |
14 |
10 |
Below Average |
0.2 |
28 |
15 |
Boom |
0.1 |
35 |
20 |