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Consider the following information: Probability of State Economy of Economy Recession .20 Normal .60 Boom .20 Rate of Retum if State Occurs Stock A Stock
Consider the following information: Probability of State Economy of Economy Recession .20 Normal .60 Boom .20 Rate of Retum if State Occurs Stock A Stock B .035 -.30 .115 .20 .190 .43 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.) Expected retum % E(RA) E(RB) 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.) Standard deviation A %
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