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Consider the following information: Probability of Economy Recession State of Economy Rate of Return if State Occurs Stock A Stock B .21 .040 -31

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Consider the following information: Probability of Economy Recession State of Economy Rate of Return if State Occurs Stock A Stock B .21 .040 -31 Normal Boom .61 .18 .120 .21 .200 .44 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. a. Expected return of A Expected return of B b. Standard deviation of A Standard deviation of B % % % %

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