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Consider the following information: Economy Recession Normal Boom Probability of State of Economy .24 .59 17 Rate of Return if State Occurs Stock B a.
Consider the following information: Economy Recession Normal Boom Probability of State of Economy .24 .59 17 Rate of Return if State Occurs Stock B a. Expected return of A Expected return of B b. Standard deviation of A Standard deviation of B Stock A .030 .110 .180 a. 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 b. 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 -.29 .19 .42 % % % % 4
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