Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Recession .17 .05 .21 Normal .62 .09 .08 Boom .21 .16 .25

Calculate the expected return for each stock. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Expected return Stock A % Stock B %

Calculate the standard deviation for each stock. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Standard deviation Stock A % Stock B %