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There is 23.30% probability of a below average economy and a 76.80% probability of an average economy. If there is a below average economy stocks
There is 23.30% probability of a below average economy and a 76.80% probability of an average economy. If there is a below average economy stocks A and B will have returns of -0.50% and 4.20%, respectively. If there is an average economy stocks A and B will have returns of 12.60% and -2.90%, respectively. Compute the:
a) Expected return for stock A?
b) Expected return for stock B?
c) Standard Deviation for stock A?
d) Standard Deviated for stock B?
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