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Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Recession .25 .03 .15 Normal .55 .13

Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Recession .25 .03 .15 Normal .55 .13 .13 Boom .20 .16 .33 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.) 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.)

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