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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 .010 .35 Normal
Consider the following information:
Economy | Probability of State of Economy | Rate of Return if State Occurs | |
---|---|---|---|
Stock A | Stock B | ||
Recession | .20 | .010 | .35 |
Normal | .55 | .090 | .25 |
Boom | .25 | .240 | .48 |
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.
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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