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Consider the following information: Rate of Return if State Occurs Probability of State of Economy .20 State of Economy Stock A Stock B Recession .02

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Consider the following information: Rate of Return if State Occurs Probability of State of Economy .20 State of Economy Stock A Stock B Recession .02 -.20 .12 Normal .60 .08 Boom .20 .14 .35 Calculate the expected return for Stock A. 8.00% Calculate the expected return for Stock B. 10.20% Calculate the standard deviation for Stock A. 3.60% Calculate the standard deviation for Stock B. 12.40%

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