requirement 1 Calculate the return for the two stocks.

requirement 2 Calculate the standard deviation for the two stocks.

Award: 10.00 points Problem 11-7 Calculating Returns and Standard Deviation Consider the following information Rate of Return if State Occurs State of Economy Recession Nomal Boom Probability of State of Economy 23 Stock A 025 105 270 Stock B 28 51 19 Requirement 1: Calculate the expected retum for the two stocks. (Do not round inberms answers as a percentage rounded to 2 decimal places 9-3216).) Expected retum E(RA) E(RB) Requirement 2: Calculate the standard deviation for the two stocks. (Do not round your answers as a percentage rounded to 2 decimal places (e.g., 32 Standard deviation OB Hints Hint #1