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There is a 40.52% probability of a below-average economy and a 59.48% probability of an average economy. If there is a below-average economy, Stocks A
There is a 40.52% probability of a below-average economy and a 59.48% probability of an average economy. If there is a below-average economy, Stocks A and B will have returns of -9.25% and -9.46% , respectively. If there is an average economy, Stocks A and B will have returns of 18.57% and 15.38%, respectively. Compute the following for Stocks A and B:
a) Stock A Expected Return :
b) Stock B Expected Return :
c) Stock A Standard Deviation :
d) Stock B Standard Deviation :
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