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There is a 21.35% probability of a below-average economy and a 78.65% probability of an average economy. If there is a below-average economy, Stocks A
There is a 21.35% probability of a below-average economy and a 78.65% probability of an average economy. If there is a below-average economy, Stocks A and B will have returns of -9.67% and -7.80%. If there is an average economy, Stocks A and B will have returns of 17.66% and 7.61%. Compute the following for Stocks A & B: Stock A Expected Return: Stock B Expected Return: Stock A Standard Deviation: Stock B Standard Deviation:
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