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Consider the following information: Rate of Return If State Occurs Stock A Stock B State of Probability of State of Economy Economy Recession .16 Normal

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Consider the following information: Rate of Return If State Occurs Stock A Stock B State of Probability of State of Economy Economy Recession .16 Normal .62 Boom .22 .05 .08 .13 - 16 .13 .30 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.) a. Stock A expected return Stock B expected return b. Stock A standard deviation Stock B standard deviation 8.62% 0.12% 2.56% 14.05%

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