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 equities:

Rate of return if state occurs State of economy Probability of state of economy Equity A

Equity B

Recession 0.25 0.05 −0.17 Normal 0.55 0.08 0.12 Boom 0.20 0.13 0.29

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