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The following table shows the possible retums for 2 stocks next year. Stock A Stock B -3% State of Economy Probability Depression 0.10 Recession 0.25

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The following table shows the possible retums for 2 stocks next year. Stock A Stock B -3% State of Economy Probability Depression 0.10 Recession 0.25 Normal 0.45 Boom 0.20 2% -12% 6.9% 13% 23.1% 7% 12% For Stock A: Expected return = 5.75% Standard Deviation = 3.5576% Coefficient of Variation = .6187x Required: a) Calculate the expected return, standard deviation and coefficient of variation for Stock B b) Based on this information which stock would you investin and why

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