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Consider the following information: Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Recession 0.20 0.05

Consider the following information:

Rate of Return if State Occurs
State of Economy Probability of State of Economy Stock A Stock B
Recession 0.20 0.05 -0.22
Normal 0.50 0.09 0.16
Boom 0.30 0.15 0.33

(c)

Calculate the standard deviation for Stock A. (Do not round your intermediate calculations.)

A) 3.61%

B) 2.55%

C) 3.79%

D) 3.43%

E) 3.75%

(d)

Calculate the standard deviation for Stock B. (Do not round your intermediate calculations.)

A) 19.22%

B) 13.59%

C) 21.18%

D) 18.26% E) 19.98%

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