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Consider the following information: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Recession .17 .05

Consider the following information: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Recession .17 .05 .21 Normal .62 .09 .08 Boom .21 .16 .25 Calculate the expected return for each stock. Calculate the standard deviation for each stock.

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