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The standard deviation of returns is a measure of total risk. Suppose you are provided the following information on returns for stocks A and

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The standard deviation of returns is a measure of total risk. Suppose you are provided the following information on returns for stocks A and stock B in three possible states of the economy State Boom Normal Recession The probability in recession is Probability 0.5 0.2 A B 0.25 0.1 0.2 0.3 0.05 0.4 The expected return for stock A is (Round your answer to two decimal places.) The variance for stock A is (Round your answer to four decimal places.) The expected return for stock B is (Round your answer to two decimal places) The variance for stock B is (Round your answer to four decimal places) The standard deviation for stock A is while the standard deviation for stock B is (Round your answers to four decimal places) Stock has more total risk

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