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Consider the following information: State of Economy Recession Normal Boom Probability of State of Economy .20 .55 .25 Rate of Return if State Occurs Stock
Consider the following information: State of Economy Recession Normal Boom Probability of State of Economy .20 .55 .25 Rate of Return if State Occurs Stock A .05 .08 .13 Stock B -.18 11 .28 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.)
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