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Consider the following information: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Recession .20 .05

Consider the following information:

Rate of Return If State Occurs
State of Probability of
Economy State of Economy Stock A Stock B
Recession .20 .05 .20
Normal .57 .08 .09
Boom .23 .13 .26

Calculate the expected return for each stock.

Expected return
Stock A %
Stock B %

Calculate the standard deviation for each stock. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Standard deviation
Stock A %
Stock B %

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