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7. Calculating Returns and Standard Deviations. Based on the following information, calculate the expected return and standard deviation for the two stocks, LO 1 State

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7. Calculating Returns and Standard Deviations. Based on the following information, calculate the expected return and standard deviation for the two stocks, LO 1 State of Probability of State of Economy Rate of Return If State Occurs Economy Stock A Stock B .02 -.30 .10 Recession .18 .10 .50 Normal 31 .15 .40 Boom

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