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Rate of Return if State Occurs Probability of State of Economy Stock A State of Economy Recession Normal Bloom .es Stock B -.11 .16 -55

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Rate of Return if State Occurs Probability of State of Economy Stock A State of Economy Recession Normal Bloom .es Stock B -.11 .16 -55 .20 16 a. Calculate the expected return for the two stocks. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Expected return for A Expected return for B 9 b. Calculate the standard deviation for the two stocks. (Do not round your intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) 96 Standard deviation for A Standard deviation for B 96

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