Consider the following information:

Rate of Return If State Occurs State of Economy Probability of State of Economy Stock A Stock B Recession .25 .03 .11 Normal .30 .10 .17 Boom .45 .12 .37

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. Omit the "%" sign in your response.)

Expected return for A % Expected return for B %

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. Omit the "%" sign in your response.)

Standard deviation for A % Standard deviation for B %