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Consider the following information Probability of State of Economy Rate of Return if State Occurs Economy Recession Normal Boom Stock A .010 .090 .140 Stock

Consider the following information Probability of State of Economy Rate of Return if State Occurs Economy Recession Normal Boom Stock A .010 .090 .140 Stock B .25 .15 .38 .20 25 a. Calculate the expected return for the two stocks. (Do not round intermediate calculations Expected return E(RA) E(RB) 8.65 % 12.75 % b. Calculate the standard deviation for the two stocks. (Do not round intermediate calculation Standard deviation

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