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

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

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