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Consider the following two stocks. Probabilities (pi) Stock A Stock B Recession p1=27% -9% 7% Normal p2=37% 4% -13% Boom p3=36% 20% 29% The portfolio

Consider the following two stocks.

	Probabilities (pi)	Stock "A"	Stock "B"
Recession	p1=27%	-9%	7%
Normal	p2=37%	4%	-13%
Boom	p3=36%	20%	29%

The portfolio weights for stocks "A" and "B" are 0.3 and 0.7, respectively.

E(ra)= 6.25

E(rb)=7.52

What are the standard deviations of stocks "A" and "B"? Enter your answers as a percentage. Do not put the percent sign in your answers. Round your answers to 2 DECIMAL PLACES.

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