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Consider the following information: Rate of Return if State Occurs Probability of State of State Economy of Economy Stock A Stock B Recession 15 -.30

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Consider the following information: Rate of Return if State Occurs Probability of State of State Economy of Economy Stock A Stock B Recession 15 -.30 Normal 50 18 Boom .35 31 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.) 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.) a. Stock A expected return % Stock B expected return % b. Stock A standard deviation % Stock B standard deviation % 215 02

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