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Consider the following information: Probability of Rate of Return if State Occurs State of Economy Stock A Stock B .22 .020 Economy Recession Normal Boom
Consider the following information: Probability of Rate of Return if State Occurs State of Economy Stock A Stock B .22 .020 Economy Recession Normal Boom .57 .100 -.37 .27 21 .260 .50 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.) Expected return of A Expected return of B Standard deviation of A Standard deviation of B
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