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Two stocks are expected to produce the following returns given the various states of the economy. Please calculate the expected rate of return, variance and
Two stocks are expected to produce the following returns given the various states of the economy. Please calculate the expected rate of return, variance and standard deviation for the two stocks. Which is a better investment? State Boom Normal Recession Probability 0.2 0.6 0.2 Stock A 25% 10% -5% Stock B 12% 8% 2%
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