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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 0.25
Consider the following information: Rate of Return if State Occurs State of Probability of Economy State of Economy Stock A Stock B Recession 0.25 0.05 -0.11 Normal 0.55 0.12 0.16 Boom 0.20 0.16 0.36 a. Calculate the expected return for the two stocks. (Do not round intermediate calculations. En rounded to 2 decimal places.) Expected return for A 11.05 % Expected return for B 13.25 % b. Calculate the standard deviation for the two stocks. (Do not round your intermediate calculati percent rounded to 2 decimal places.) Standard deviation for A Standard deviation for B 13.25 % do do %
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