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Consider the following information: Probability of Economy Rate of Return if State Occurs State of Economy Stock A Stock B Recession .22 .045 -.32

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Consider the following information: Probability of Economy Rate of Return if State Occurs State of Economy Stock A Stock B Recession .22 .045 -.32 Normal Boom .62 .16 .125 .210 .22 .45 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., 32.1 b. Calculate the standard deviation for the two stocks. I Note: 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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