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Consider the following information: Rate of Return if State Occurs Probability of State State of Economy of Economy Stock A Stock B Recession .17 .08

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Consider the following information: Rate of Return if State Occurs Probability of State State of Economy of Economy Stock A Stock B Recession .17 .08 -12 Normal .58 .11 .17 Boom .25 .16 .34 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 a. Stock B expected return b. Stock A standard deviation b. Stock B standard deviation 0.12 % 0.46 % 2.69 % 14.65 %

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