StateProbabilityReturn on Stock AReturn on Stock B10.1010%8%20.2013%7%30.2012%6%40.3014%9%50.2015%8%The standard deviations of stocks A and B are and , respectively.
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State
Probability
Return on Stock A
Return on Stock B
1
0.10
10%
8%
2
0.20
13%
7%
3
0.20
12%
6%
4
0.30
14%
9%
5
0.20
15%
8%
The standard deviations of stocks A and B are and , respectively.