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Calculating Returns and Standard Deviations Based on the following information, calculate the expected return and standard deviation for the two stocks: State Of economy Probability

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

State Of economy

Probability of state of economy

Rate of returns if state occurs

Stock A

Stock B

Recession

.25

.06

-.20

Normal

.55

.07

.13

Boom

.20

.11

.33

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