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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

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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 of State of Economy Rate of Return If State Occurs Stock A Stock B Recession Normal Boom .10 .50 40 .02 .10 15 -.30 .18 31

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