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Consider the following information: Rate of Return if State Occurs State of Economy Recession Norma.1 Boom Probability of State of Economy 0.25 0.60 0.15 Stock
Consider the following information: Rate of Return if State Occurs State of Economy Recession Norma.1 Boom Probability of State of Economy 0.25 0.60 0.15 Stock A Stock B 0.05 0.11 0.15 0.18 0.38 a. Calculate the expected return for the two stocks. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Expected return for A Expected return for B b. Calculate the standard deviation for the two stocks. (Do not round your intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Standard deviation for A Standard deviation for B
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