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

Consider the following information:

State of Economy Probability of State of Economy Rate of Return if State Occurs
Stock A Stock B
Recession .15 .04 .17
Normal .55 .09 .12
Boom .30 .17 .27

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.)

Stock A expected return%

Stock B expected return%

Stock A standard deviation%

Stock B standard deviation%

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