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Q9) There is a 22.55% probability of a below-average economy and a 77.45% probability of an average economy. If there is a below-average economy,
Q9) There is a 22.55% probability of a below-average economy and a 77.45% probability of an average economy. If there is a below-average economy, Stocks A and B will have returns of 3.26% and -5.49%, respectively. If there is an average economy, Stocks A and B will have returns of 13.80% and 6.66%, respectively. Compute the following for Stocks A and B: a) Stock A Expected Return: (1 point) b) Stock B Expected Return: (1 point) c) Stock A Standard Deviation: (1.5 points) d) Stock B Standard Deviation: (1.5 points)
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