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Calculating returns and standard deviation. Based on the following information, can you calculate the expected return and standard deviation for the two stocks?: State of
Calculating returns and standard deviation. Based on the following information, can you calculate the expected return and standard deviation for the two stocks?:
State of economy. Prob of st of econ Rate of return if state occurs
Stock A Stock B
Recession .25 .06 -.20
Normal .55 .07 .13
Boom .20 . .11 .33
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