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State of Economy Probability of State of Economy Rate of return if State Occurs Stock A Stock B Recession .20 .05 -.20 Normal .57 .08
State of Economy Probability of State of Economy Rate of return if State Occurs
Stock A Stock B
Recession .20 .05 -.20
Normal .57 .08 .09
Boom .23 .13 .26
Calculate expected return for A and B
Calculate the standard deviation for stock A and B
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