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Rate of Return if State Occurs State of Economy Recession Normal Boom Probability of State of Economy .20 .55 .25 Stock A Stock B .06

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Rate of Return if State Occurs State of Economy Recession Normal Boom Probability of State of Economy .20 .55 .25 Stock A Stock B .06 -. 11 .13 . 17 .18 .37 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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