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M UOLIUS [LU Consider the following information: Rate of Return if State Occurs SU Probability of State of Economy .20 Stock A State of Economy

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M UOLIUS [LU Consider the following information: Rate of Return if State Occurs SU Probability of State of Economy .20 Stock A State of Economy Recession Normal Boom Stock B .035 -40 .60 20 115 .290 .30 53 Requirement 1: Calculate the expected return for the two stocks. (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).) Expected return E(RA) E(RB) % Prev 1 of 3 Next > Boom 20 .290 Requirement 1: Calculate the expected return for the two stocks. (Do not round Intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).) Expected return E(RA) E(RB) 20 Requirement 2: Calculate the standard deviation for the two stocks. (Do not round Intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).) Standard deviation Next >

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