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Based on the following information: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Recession .20
Based on the following information: |
Rate of Return If State Occurs | |||||||||
State of | Probability of | ||||||||
Economy | State of Economy | Stock A | Stock B | ||||||
Recession | .20 | .05 | .20 | ||||||
Normal | .57 | .08 | .09 | ||||||
Boom | .23 | .13 | .26 | ||||||
Calculate the expected return for the two stocks. (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) |
Expected return | |
Stock A | % |
Stock B | % |
Calculate the standard deviation for the two stocks. (Do not round intermediate calculations and round your answers to 2 decimal places. (e.g., 32.16)) |
Standard deviation | |
Stock A | % |
Stock B | % |
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