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Consider the following information: Rate of Return If State Occurs Probability of State of Economy State of Economy Stock A Stock B Recession 19 10
Consider the following information: Rate of Return If State Occurs Probability of State of Economy State of Economy Stock A Stock B Recession 19 10 - 14 Normal .60 13 15 Boom .21 18 .32 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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