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There is a 46% probability of a below average economy and a 54% probability of an average economy. If there is a below average economy
There is a 46% probability of a below average economy and a 54% probability of an average economy. If there is a below average economy stocks A and B will have returns of -5% and -8%, respectively. If there is an average economy stocks A and B will have returns of 13% and 14%, respectively. Calculate the expected returns and standard deviations of stocks A and B.
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