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09) There is a 17.34% probability of a below-average economy and a 82.66% probability of an average economy. If there is a below-average economy, Stocks
09) There is a 17.34% probability of a below-average economy and a 82.66% probability of an average economy. If there is a below-average economy, Stocks A and B will have returns of -9.93% and -6.38%, respectively. If there is an average economy, Stocks A and B will have returns of 12.16% and 17.57%, respectively. Compute the following for Stocks A and B: a) Stock A Expected Return: (1 point) b) Stock B Expected Return: (1 point) c) Stock A Standard Deviation : (1.5 points) d) Stock B Standard Deviation : (1.5 points)
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