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

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Consider the following information Economy Recession Normal Boom Probability of Rate of Return of State Occurs State of Economy Stock A Stock B 20 .035 - 40 .60 115 30 20 290 53 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.) % a. Expected return of A Expected return of B % b. Standard deviation of A % Standard deviation of B %

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