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4. The stocks of Dell and HP have the following expected returns: State of Economy Probability of State of Economy Dell's Return if State Occurs

4. The stocks of Dell and HP have the following expected returns: State of Economy Probability of State of Economy Dell's Return if State Occurs HP's Return if State Occurs

Recession 40% -12% -15%

Normal 20% 8% 6%

Boom 30% 16% 13%

Which company's stock is riskier, based on standard deviation?

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