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Q1 (25 marks) a) Consider the following information: State of Economy Recession Normal Boom Probability of State of Economy .15 55 30 Rate of Return

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Q1 (25 marks) a) Consider the following information: State of Economy Recession Normal Boom Probability of State of Economy .15 55 30 Rate of Return if State Occurs Stock A Stock B .04 .17 09 12 .17 27 a) Calculate the expected return for each stock. b) Calculate the standard deviation for each stock

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