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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 .30 .55 . 15

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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 .30 .55 . 15 Stock A .06 . 15 .18 Stock B -.20 . 15 .35 a. Calculate the expected return for the two stocks. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) X Answer is complete but not entirely correct. 0.13 X % Expected return for A Expected return for B 0.05 X % b. Calculate the standard deviation for the two stocks. (Do not round your intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) X Answer is complete but not entirely correct. Standard deviation for A 6.10 X % Standard deviation for B 18.41 X %

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