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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 0.10 0.60 0.30 Stock
Consider the following information: Rate of Return if State Occurs State of Economy Recession Normal Boom Probability of State of Economy 0.10 0.60 0.30 Stock A 0.03 0.09 0.16 Stock B -0.22 0.17 0.35 Required: (a) Calculate the expected return for Stock A. (Do not round your intermediate calculations.) 10.50% (b) Calculate the expected return for Stock B. (Do not round your intermediate calculations.) 18.50% (c) Calculate the standard deviation for Stock A. (Do not round your intermediate calculations.) (Click to select) Y (d) Calculate the standard deviation for Stock B. (Do not round your intermediate calculations.)
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