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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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