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Parta only Consider the following information: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Recession
Parta only Consider the following information: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Recession 22 .07 Normal .52 .10 .07 Boom 26 .15 .24 -22 a. Calculate the expected return for Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation for Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. a. 10.64 2.59 b. Stock A expected return Stock B expected return Stock A standard deviation Stock B standard deviation 14.72 % 16.01
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