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Rate of Return if State Occurs Probability State of of State of Economy Economy Recession .3 Normal .4 Boom .3 Stock A Stock B .04

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Rate of Return if State Occurs Probability State of of State of Economy Economy Recession .3 Normal .4 Boom .3 Stock A Stock B .04 -.20 .09 .13 .12 .33 a. Calculate the expected return fo{the two stocks. (Do not round intermediate calculations. Enter your answers as a perc rounded to 2 decimal places.) Expected return for A Expected return for B 8.401% 9.10% b. Calculate the standard deviation for the two stocks. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Standard deviation for A Standard deviation for B

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