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

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Consider the following information: Economy Recession Normal Boom Probability of Rate of Return if State Occurs State of Economy Stock A Stock B .22 .045 -42 .62 .125 .32 .16 .310 .55 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.) 13.70 % 19.40% a. Expected return of A Expected return of B b. Standard deviation of A Standard deviation of B % %

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