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Rate of Return if State Occurs State of Economy Stock A Stock B Recession Normal Boom Probability of State of Economy 0.15 0.55 0.30 0.08

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Rate of Return if State Occurs State of Economy Stock A Stock B Recession Normal Boom Probability of State of Economy 0.15 0.55 0.30 0.08 0.13 0.21 0.21 0.16 0.31 Calculate the expected return for each stock. (Do not round intermediate calculations. Round the final answers to 2 decimal places.) Expected return 16.55 % Stock A Stock B 12.55 % Calculate the standard deviation for each stock. (Do not round intermediate calculations. Round the final answers to 2 decimal places.) Standard deviation Stock A 3.83 % Stock B 11.71 g

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