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please show steps Consider the following information: 4 Rate of Return If State Occurs State of Probability of - State of Economy Stock A Stock

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Consider the following information: 4 Rate of Return If State Occurs State of Probability of - State of Economy Stock A Stock B Economy Recession .16 .05 - 16 Normal .62 .08 13 Boom .22 .13 30 7.5/10 points awarded Scored 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.) a. 8.62 % 0.12 % 2.56 % >IX Stock A expected return Stock B expected return Stock A standard deviation Stock B standard deviation b. 14.05 %

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