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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 Normal 62

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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 Normal 62 Boom 21 .05 .09 16 -21 08 25 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 %

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