State of Economy Probability of State of Economy Rate of Return if State Occurs

Stock A Stock B

Recession $0\mathrm{.}200\mathrm{.}050\mathrm{.}20$

Normal $0\mathrm{.}550\mathrm{.}140\mathrm{.}14$

Boom $0\mathrm{.}250\mathrm{.}160\mathrm{.}34$

Calculate the expected return for the two stocks.

Calculate the standard deviation for the two stocks.