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Rate of Return If State Occurs Stock A Stock B State of Probability of Economy State of Economy Recession .19 Normal .56 Boom .25 -

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Rate of Return If State Occurs Stock A Stock B State of Probability of Economy State of Economy Recession .19 Normal .56 Boom .25 - 19 .08 .11 .10 .16 27 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 % %

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