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Rate of Return if State Occurs 1 State of Economy Recession Normal Boom Probability of State of Economy 10 150 40 Stock A .05 09

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Rate of Return if State Occurs 1 State of Economy Recession Normal Boom Probability of State of Economy 10 150 40 Stock A .05 09 .11 Stock B -19 14 31 Calculate the expected return for Stock A. Calculate the expected return for Stock B. Calculate the standard deviation for Stock A. Calculate the standard deviation for Stock B

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