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The table below summarizes information on the future returns on stocks A and B. Rate of Return if State o Economy Occurs State of Economy
The table below summarizes information on the future returns on stocks A and B. Rate of Return if State o Economy Occurs State of Economy Thumbs up Norma Thumbs down Probability of State of Economy .20 50 .30 Stock A 02 .08 .15 Stock B -.22 .14 .33 Stock As expected return is: Stock B's expected return is: Stock As standard deviation of returns is: Stock B's standard deviation of returns is
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