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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 .15 .50 .35 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 .15 .50 .35 Stock A .02 .10 .15 Stock B -.30 .18 .31 a. Calculate the expected return for the two stocks. (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 the two stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) 11.20 % 18.401% a. Stock A expected return Stock B expected return b. Stock A standard deviation Stock B standard deviation 3.87% 17.26%

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