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Question 1 The following table presents the probability of the state of economy and stock returns for three stocks. State of Economy Probability Stock returns

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Question 1 The following table presents the probability of the state of economy and stock returns for three stocks. State of Economy Probability Stock returns Stock A Stock B Stock C Boom 70% 30% 7% 4% 15% -5% 30% -10% Bust Required? a. Calculate the expected returns for each stocks. (3 pts) b. What is the standard deviation of the returns for stock A and stock B? (4 pts)

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