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Q9) There is a 18.95% probability of a below-average economy and a 81.05% probability of an average economy. If there is a below-average economy, Stocks
Q9) There is a 18.95% probability of a below-average economy and a 81.05% probability of an average economy. If there is a below-average economy, Stocks A and B will have returns of -8.42% and 2.25% , respectively. If there is an average economy, Stocks A and B will have returns of 18.10% and 8.43%, respectively. Compute the following for Stocks A and B:
Stock A Expected Return
Stock B Expected Return
Stock A STD DEV
Stock B STD DEV
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