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Consider the following information: Rate of Return If State Occurs State of Probability of State of Economy Stock A Stock B Economy Recession 15 .04

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Consider the following information: Rate of Return If State Occurs State of Probability of State of Economy Stock A Stock B Economy Recession 15 .04 -.15 Normal .61 .07 14 Boom .24 .12 .31 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.) Answer is not complete. a. Stock A expected return 7.75 % Stock B expected return 13.73 % b. Stock A standard deviation % Stock B standard deviation do de %

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