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Consider the following information: Rate of Return if State Occurs Probability of State State of Economy of Economy Stock A Stock B Recession .19 .10

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Consider the following information: Rate of Return if State Occurs Probability of State State of Economy of Economy Stock A Stock B Recession .19 .10 -.14 Normal .60 13 15 Boom .21 .18 .32 a. Calculate the expected return 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.) 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 complete but not entirely correct. 5.68 % a. Stock A expected return a. Stock B expected return 4.06 % b. Stock A standard deviation 8.22 % b. Stock B standard deviation 17.25 %

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