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Probability of State of Economy .23 .63 -14 Rate of Return if State Occurs Economy Recession Normal Boom Stock A 050 -130 220 Stock B

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Probability of State of Economy .23 .63 -14 Rate of Return if State Occurs Economy Recession Normal Boom Stock A 050 -130 220 Stock B .33 23 .46 a. Calculate the expected return for the two stocks. (Do not round intermediate calculatio Expected return E(RA) E(RB) 12.42 % b. Calculate the standard deviation for the two stocks. (Do not round Intermediate calculat Standard deviatiorn 26.50 %

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