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State of Economy, Probability of State of Economy, Stock A, Stock B Recession, (.10), (.04), (-.17) Normal, (.60), (.09), (.12) Boom, (.30), (.17), (.27) a.

State of Economy, Probability of State of Economy, Stock A, Stock B

Recession, (.10), (.04), (-.17)

Normal, (.60), (.09), (.12)

Boom, (.30), (.17), (.27)

a.

Calculate the expected return for Stocks A and B.

b. Calculate the standard deviation for Stocks A and B.

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