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Consider the following information: Rate of Return if State Occurs Economy Recession Normal Boom Probability of State of Economy .23 .58 .19 Stock A .025

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Consider the following information: Rate of Return if State Occurs Economy Recession Normal Boom Probability of State of Economy .23 .58 .19 Stock A .025 .105 .170 Stock B -.28 .18 .41 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.) a. Expected return of A Expected return of B % % % b. Standard deviation of A Standard deviation of B %

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