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Rate of Return if State Occurs State of Economy Recession Normal Boom Probability of State of Economy 15 50 35 Stock A .02 10 15

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Rate of Return if State Occurs State of Economy Recession Normal Boom Probability of State of Economy 15 50 35 Stock A .02 10 15 Stock B - 30 .18 31 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.) a. Stock A expected return Stock B expected retum b. Stock A standard deviation Stock B standard deviation 5% % % % delee

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