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Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Stock A Rate of Return if State

Consider the following information:

State of Economy Probability of State of Economy

Rate of Return if State Occurs

Stock A

Rate of Return if State Occurs

Stock B

Recession 0.20 0.05 -0.18
Normal 0.55 0.08 0.11
Boom 0.25 0.13

0.28

Calculate the expected return for the two stocks (Round your answer to 2 decimal places (e.g., 32.16))

Expected Return:

Stock A= %

Stock B= %

Calculate the standard deviation for the two stocks. (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)

Standard Deviation

Stock A= %

Stock B= %

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