Rate of Return If State Occurs State of

Probability Stock A Stock B

Recession .15 .04 .15

Normal .61 .07 .14

Boom .24 .12 .31

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.)

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.)