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Consider the following information Rate of Return if State Occurs State of Economy Recession Normal Boom Probability of State of Economy 15 Stock A 02

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Consider the following information Rate of Return if State Occurs State of Economy Recession Normal Boom Probability of State of Economy 15 Stock A 02 10 Stock B -.30 18 .31 .30 Requirement 1: Calculate the expected return for the two stocks. (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Expected return E(RA) E(RB) 10.300 % 14.70 0 % Requirement 2: Calculate the standard deviation for the two stocks. (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).) Standard deviationn 2.38 % 11.33 %

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