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1. (14 pts) The Grunewald Company has developed the following data regarding the rates of return on a potential stock and the market: State of

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1. (14 pts) The Grunewald Company has developed the following data regarding the rates of return on a potential stock and the market: State of the Economy of Each Rates of Return If State occurs State Occuring .20 Stock A (20%) Market (30%) .20 10 Deep Recession Mild Recession Average Mild boom Strong boom .20 .20 a) Calculate the standard deviations for the stock A and the Market. b) Calculate the betas for the stock A and the market c) Calculate the probability that stock A's return is negative, that is P (KOE? d) Calculate the probability that stock A's return is between 0 and 15%, that is P (0

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