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1. According to the information given below: a) What are the expected rates of return for Stocks A and B? (20p) b) What are the

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1. According to the information given below: a) What are the expected rates of return for Stocks A and B? (20p) b) What are the standard deviations of returns on Stock A and B? (20p) Bear Market Normal Market Bull Market 0.5 0.3 Probability 0.2 20% 40% -35% Stock A 30% 15% -25% Stock B NOTE: PLEASE SHOW HOW YOU COMPUTE EACH OF THE ITEMS

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