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Consider the following information: Economy Recession Normal Boom Probability of Rate of Return if State Occurs State of Economy .22 .62 16 Stock A .045

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Consider the following information: Economy Recession Normal Boom Probability of Rate of Return if State Occurs State of Economy .22 .62 16 Stock A .045 125 .210 a. Expected return of A Expected return of B b. Standard deviation of A Standard deviation of B a. Calculate the expected return for the two stocks. (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. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Stock B -.32 .22 .45 % % % %

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