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Problem 13-7 Calculating Returns and Standard Deviations [LO1] Consider the following information: Rate of Return If State Occurs State of Economy Recession Normal Boom Probability
Problem 13-7 Calculating Returns and Standard Deviations [LO1] Consider the following information: Rate of Return If State Occurs State of Economy Recession Normal Boom Probability of - State of Economy 0.22 0.52 0.26 Stock A 0.07 0.10 0.15 Stock B -0.22 0.07 0.24 Calculate the expected return for the two stocks. (Round your answers to 2 decimal places. (e.g., 32.16)) Expected return Stock A Stock B Calculate the standard deviation for the two stocks. (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) Standard deviation Stock A Stock B
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