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Rate of Return if State Occurs Economy Recession Normal Boom Probability of State of Economy .23 .58 .19 Stock A .025 .105 .270 Stock B
Rate of Return if State Occurs Economy Recession Normal Boom Probability of State of Economy .23 .58 .19 Stock A .025 .105 .270 Stock B -.38 .28 .51 a. Calculate the expected return for the two stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation for the two stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) % a. Expected return of A Expected return of B b. Standard deviation of A % % Standard deviation of B %
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