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1. Find the expected return and standard deviation for stock A and stock B Scenario Probability Stocks Bonds Boom 5% 26% 10% Very Good 20%

1. Find the expected return and standard deviation for stock A and stock B

Scenario Probability Stocks Bonds
Boom 5% 26% 10%
Very Good 20% 18% 11%
Normal 50% 12% 4%
Poor 20% -2% 7%
Bust 5% -8% 9%

2. Glenn's discount payday loans offers the following terms: Glenn will charge you $9 per $100 advance, and the loan is due in 16 days

the APR of the loan is______________ and the EAR of this loan is ________________

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