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Rate of Return if State Occurs State of Economy Recession Normal Boom Probability of State of Economy . 35 .40 .25 Stock A .07 .09

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Rate of Return if State Occurs State of Economy Recession Normal Boom Probability of State of Economy . 35 .40 .25 Stock A .07 .09 . 13 Stock B -.17 . 16 .36 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 % 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.) % Standard deviation for A Standard deviation for B %

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