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Consider the following information: Probability of Rate of Return if State Occurs Economy State of Economy Stock A Stock B Recession .22 .020 -.27

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Consider the following information: Probability of Rate of Return if State Occurs Economy State of Economy Stock A Stock B Recession .22 .020 -.27 Normal Boom .57 .21 .100 .160 .17 .40 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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