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Consider the following information: Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Recession 0.20 0.05
Consider the following information: Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Recession 0.20 0.05 -0.21 Normal 0.60 0.08 0.15 Boom 0.20 0.16 0.34
Calculate both the expected return and standar deviation for stocks A and B
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