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Consider the following information: Rate of Return If State Occurs State of Probability of State of Stock A Stock B Recession .17 .06 - .17

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Consider the following information: Rate of Return If State Occurs State of Probability of State of Stock A Stock B Recession .17 .06 - .17 Normal .50 .09 .12 Boom .33 14 Economy Economy .29 a. Calculate the expected return for Stocks A and B. (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 Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) 10.14% 12.68 % Stock A expected return Stock B expected return Stock A standard deviation Stock B standard deviation

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