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Rate of Return if State Occurs State of Economy Recession Normal Boom Probability of State of Economy 0.20 0.55 0.25 Stock A 0.05 0.14 0.16

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Rate of Return if State Occurs State of Economy Recession Normal Boom Probability of State of Economy 0.20 0.55 0.25 Stock A 0.05 0.14 0.16 Stock B -0.20 0.14 0.34 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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