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******DO NOT USE EXCEL - Show Calculations and formulas.******* Based on the following information, calculate the expected return and standard deviation for the two stocks.

******DO NOT USE EXCEL - Show Calculations and formulas.*******

Based on the following information, calculate the expected return and standard deviation for the two stocks.

Rate pf return if state occurs

State of economy

Probability of State of Economy

Stock A

Stock B

Recession

0.15

0.02

-0.20

Normal

0.55

0.08

0.13

Boom

0.30

0.13

0.33

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