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Using the following expectations for Stocks X and Y to answer the questions below. Round to the nearest %. (Total 6 points) Bear Market Normal
Using the following expectations for Stocks X and Y to answer the questions below. Round to the nearest %. (Total 6 points) Bear Market Normal Market Bull Market Probability (%) 0.25 0.5 0.25 Stock A -12% 15% 25% Stock B -15% 20% 28% 1). What are the expected returns for Stocks A and B? (2 points) 2). What are the standard deviation of returns on Stocks A and B? (4 points)
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