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Rate of Return If State Occurs State of Economy Probability of State of Economy Stock A Stock B Recession .17 .05 .21 Normal .62 .09

Rate of Return If State Occurs
State of Economy Probability of
State of Economy Stock A Stock B
Recession .17 .05 .21
Normal .62 .09 .08
Boom .21 .16 .25
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.)

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