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Q1) There is a 16.60% probability of a below average economy and a 83.40% probability of an average economy. If there is a below average

Q1) There is a 16.60% probability of a below average economy and a 83.40% probability of an average economy. If there is a below average economy stocks A and B will have returns of -4.70% and 15.70%, respectively. If there is an average economy stocks A and B will have returns of 14.50% and -0.60%, respectively. Compute the: a) Expected Return for Stock A:

b) Expected Return for Stock B:

c) Standard Deviation for Stock A:

d) Standard Deviation for Stock B:

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