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P13-7 Calculating Returns and Standard Deviations (L01) Consider the following information: Rate of Return if State Occurs State of Economy Recession Normal Boom Probability of
P13-7 Calculating Returns and Standard Deviations (L01) Consider the following information: Rate of Return if State Occurs State of Economy Recession Normal Boom Probability of State of Economy 0.10 0.70 0.20 Stock A 0.03 0.07 0.11 Stock B -0.18 0.14 0.36 Required: (a) Calculate the expected return for Stock A. (Do not round your intermediate calculations.) (Click to select) (b) Calculate the expected return for Stock B. (Do not round your intermediate calculations.) (Click to select) (c) Calculate the standard deviation for Stock A. (Do not round your intermediate calculations.) (Click to select) (d) Calculate the standard deviation for Stock B. (Do not round your intermediate calculations.) (Click to select)
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