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Consider the following information: Rate of Return if State Occurs Stock B State of Economy Recession Normal Boom Probability of State of Economy .20 .55
Consider the following information: Rate of Return if State Occurs Stock B State of Economy Recession Normal Boom Probability of State of Economy .20 .55 .25 Stock A .06 . 13 .18 - 11 .17 . 37 a. Calculate the expected return for the two stocks. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) % Expected return for A Expected return for B % b. Calculate the standard deviation for the two stocks. (Do not round your intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) % Standard deviation for A Standard deviation for B
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