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

  

Consider the following information: State of Economy Recession Normal Boom Probability of State of Economy Rate of Return if State Occurs Stock A Stock B .04 .11 .25 -.11 .60 .15 .14 .15 .35 a. Calculate the expected return for the two stocks. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Expected return for A Expected return for B % % b. Calculate the standard deviation for the two stocks. (Do not round your intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Standard deviation for A % Standard deviation for B %

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