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Consider the following information Rate of Return If State Occurs State of Probability of Economy Recession Normal Boom State of Economy .22 52 26 Stock
Consider the following information Rate of Return If State Occurs State of Probability of Economy Recession Normal Boom State of Economy .22 52 26 Stock A Stock B 07 10 15 .22 07 24 a. Calculate the expected return for Stocks A and B. (Do not round intermediat calculations and enter your answers as a percent rounded to 2 decimal places, e.g 32.16.) b. Calculate the standard deviation for Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g 32.16.) Answer is not complete a. Stock A expected return 10.64 % Stock B expected return Stock A standard deviation Stock B standard deviation 16.01%
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