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7 Consider the following information: Rate of Return if State Occurs 10 points State of Economy Recession Normal Boom Probability of State of Economy .15

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7 Consider the following information: Rate of Return if State Occurs 10 points State of Economy Recession Normal Boom Probability of State of Economy .15 .55 .30 Stock A .04 .09 .17 Stock B -.17 .12 .27 Skipped eBook Hint a. Calculate the expected return for Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation for Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Print References % a. Stock A expected return a. Stock B expected return b. Stock A standard deviation % % % b. Stock B standard deviation

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