Based on the following information, calculate the expected return and standard deviation for two stocks:

State of the Economy	Probability	Rate of Return Stock A	Rate of Return Stock B
Recession	.25	.05	-.19
Normal	.50	.06	.14
Boom	.25	.10	.34

Fill in the value in the spreadsheet.

Input area: State Recession Normal Boom Probability 0.25 0.50 0.25 Stock A 0.05 0.06 0.10 Stock B (0.19) 0.14 0.34 Output area: Return Deviation Squared Deviation Probability Return Product Product Stock A Recession Normal Boom E(R) - 0.0000 Variance = Standard Deviation 0.00% Probability Return Deviation Squared Deviation Return Product Product Stock B Recession Normal Boom E(R) - 0.0000 Variance = Standard Deviation 0.00%