Consider the following information: State of Economy Recession Normal Boom Probability of State of Economy 15 55 .30 Rate of Return if State Occurs a. Stock A expected return Stock B expected return b. Stock A standard deviation Stock B standard deviation Stock A .04 .09 .17 a. Calculate the expected return for the two stocks. Note: 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 the two stocks. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. Stock B -.17 .12 .27 % % % %

Consider the following information: o. Calculate the expected return for the fwo stocks. Note: Do not round intermediate colculations and enter your answers as a percent rounded to 2 decimal places, e.9., 32.16 . b. Calculate the standard deviation for the two stocks. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal ploces, e.9., 32.16. Consider the following information: o. Calculate the expected return for the two stocks: Note: 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 the two stocks. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16