Consider the following two stocks.

	Probabilities (pipi )	Stock "a"	Stock "b"
Recession	p1=p1= 23%	-3%	10%
Normal	p2=p2= 21%	7%	-7%
Boom	p3=p3= 56%	14%	24%

What is the expected return of each stock? Enter your answers as a percentage rounded to 2 decimal places. Do not enter the percentage sign in your answer.

ra=ra= Correct response: 8.620.01

rb=rb= Correct response: 14.270.01

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This question has 4 parts (i.e., you will be clicking "Verify" 4 times)

Using the correct answers from the previous question, what is the standard deviation of each stock? Enter your answer as a percentage rounded to 2 decimal places. Do not enter the percentage sign in your answer.

SDa=SDa=

SDb=SDb=

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