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Consider the return behavior of the following two stocks: SHOW ALL WORK and DOUBLE CHECK. Write out the math, no excel pls. State of Economy

Consider the return behavior of the following two stocks:

SHOW ALL WORK and DOUBLE CHECK. Write out the math, no excel pls.

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State of Economy Recession Normal Boom Probability of State .25 .60 .15 Return on Stock A -4.0% 7.2% 13.4% Return on Stock B 7% 8.2% 9.4% (a) Calculate the expected return on each stock. (b) Calculate the standard deviation of the return on each stock

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