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Consider the following information: Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Recession .30 .05
Consider the following information:
Rate of Return if State Occurs | |||||||||||
State of Economy | Probability of State of Economy | Stock A | Stock B | ||||||||
Recession | .30 | .05 | .15 | ||||||||
Normal | .55 | .15 | .15 | ||||||||
Boom | .15 | .20 | .35 | ||||||||
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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