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State of Economy Recession Normal Boom Probability of State of Economy 10 60 Stock A 03 .08 14 Stock B -19 .13 35 30 ed

State of Economy Recession Normal Boom Probability of State of Economy 10 60 Stock A 03 .08 14 Stock B -19 .13 35 30 ed Calculate the expected return for Stock A. K 9.30% 8.35% 9.77% 8.28% 9.67% Calculate the expected return for Stock B. 16.40% 9.67% 17.22% 15.58% 17.06% - L Calculate the standard deviation for Stock A. 3.41% 2.41% 3.58% 3.24% 3.54% Calculate the standard deviation for Stock B. 15.36% 10.86% 16.13% 14.60% 15.98%

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