Calculating Returns and Standard Deviations Based on the following information, calculate the expected return and standard deviation

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Calculating Returns and Standard Deviations Based on the following information, calculate the expected return and standard deviation for the two stocks:

State of Economy Probability of State of Economy Rate of Return if State Occurs Stock A Stock B Recession .20 .06 2.20 Normal .55 .07 .13 Boom .25 .11 .33

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Corporate Finance With Connect Access Card

ISBN: 978-1259672484

10th Edition

Authors: Stephen Ross ,Randolph Westerfield ,Jeffrey Jaffe

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