State of Economy Recession Normal Boom Probability of State of Economy a. Stock A expected return a. Stock B expected return b. Stock A standard deviation b. Stock B standard deviation 15 .56 .29 Rate of Return if State Occurs a. Calculate the expected return for Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation for Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) % d d d % % Stock A .06 .09 .14 Stock B -.10 .19 .36

a. Calculate the expected return for Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation for Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)