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Consider the following information: Economy Probability of State of Economy Rate of Return if State Occurs Stock A Stock B Recession .20 .035 .40 Normal

Consider the following information:

Economy Probability of State of Economy Rate of Return if State Occurs
Stock A Stock B
Recession .20 .035 .40
Normal .60 .115 .30
Boom .20 .290 .53

1. Calculate the expected return for the two stocks.

Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.

2. Calculate the standard deviation for the two stocks.

Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.

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