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Consider the following information Rate of Return if State Occurs Probability of State of Economy 20 60 20 Stock A .035 115 190 Stock B

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Consider the following information Rate of Return if State Occurs Probability of State of Economy 20 60 20 Stock A .035 115 190 Stock B 30 20 43 Boom 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.) Expected return E(RA E(Rg) 11.4 % 14.60 % 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.) Standard deviation OB 24 %

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