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Q9) There is a 28.58% probability of a below-average economy and a 71.42% probability of an average economy. If there is a below-average economy, Stocks

Q9) There is a 28.58% probability of a below-average economy and a 71.42% probability of an average economy. If there is a below-average economy, Stocks A and B will have returns of -6.20% and 2.13% , respectively. If there is an average economy, Stocks A and B will have returns of 6.59% and 11.16%, 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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