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Rate of Return If State Occurs State of Probability of State of Stock A Economy Stock B Economy Recession .16 07 - 11 Normal .57

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Rate of Return If State Occurs State of Probability of State of Stock A Economy Stock B Economy Recession .16 07 - 11 Normal .57 10 18 Boom .27 .15 35 a. Calculate the expected return for Stocks A and B. (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 Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Stock A expected return a. Stock B expected return Stock A standard deviation Stock B standard deviation

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