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Rate of Return If State Occurs State of Probability of Economy Recession Normal Boom State of Economy 15 61 24 Stock A 04 07 .12

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Rate of Return If State Occurs State of Probability of Economy Recession Normal Boom State of Economy 15 61 24 Stock A 04 07 .12 Stock B 15 14 .31 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.) a. Stock A expected return Stock B expected return b. Stock A standard deviation Stock B standard deviation 0

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