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Based on the following information: State of Economy Probability of State of the Economy Rate of return if State Occurs. Stock A Rate of return

Based on the following information:

State of Economy Probability of State of the Economy

Rate of return if State Occurs.

Stock A

Rate of return of state occurs

Stock B

Recession .2 .8 -.15
Normal .5 .11 .14
Boom .3 .16 .31

Calculate the expected return for the two stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Expected return Stock A: ___%

Expected return Stock B: ___%

Calculate the standard deviation for the two stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Standard deviation Stock A ___%

Standard Deviation Stock B ___%

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