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Consider the following information: Rate of Return if State Occurs State of Economy Recession Normal Boom Probability of State of Economy 0.10 0.70 0.20 Stock

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Consider the following information: Rate of Return if State Occurs State of Economy Recession Normal Boom Probability of State of Economy 0.10 0.70 0.20 Stock A 0.06 0.08 0.15 Stock B -0.20 0.13 0.34 Required: (a) Calculate the expected return for Stock A. (Do not round your i calculations.) (Click to select) (Click to select) 9.62% 9.57% 9.69% 9.20% 9.66% Io Calculate the sta (b) Calculate the expected return for Stock B. (Do not round your intermediate calculations.) (Click to select) (Click to select) 14.46% 9.00% 13.90% 13.21% 14.60% (c) Calculate the standard deviation for Stock A. (Do not round your intermediate calculations.) (d) Calculate the standard deviation for Stock B. (Do not round your intermediate (Click to select) (Click to select) calculations.) 3.08% 2.09% (Click to select) 2.81% (Click to select 3.11% 13.31% 2.96% 9.91% 14.01% 14.71% 14.57%

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