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Consider the following information Rate of Return if State Occurs Probability of State of Economy Stock A Stock B Economy Recession Normal Boom 24 59
Consider the following information Rate of Return if State Occurs Probability of State of Economy Stock A Stock B Economy Recession Normal Boom 24 59 17 030 110 180 - 29 19 42 a. Calculate the expected return for the two stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return E(RA) E(RB) b. Calculate the standard deviation for the two stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Standard deviation OB
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