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You are trying to form portfolios based on the following information: State Probability Return A Return B Poor 20.0% -4.0% -4.0% Normal 40.0% 3.0% 8.0%

You are trying to form portfolios based on the following information:

State Probability Return A Return B
Poor 20.0% -4.0% -4.0%
Normal 40.0% 3.0% 8.0%
Good 30.0% 10.0% 8.0%
Very Good 10.0% 30.0% 10.0%

You also know the risk-free rate is 5%.

Question 1: Calculate the Expected Returns for both Stock A and Stock B

Question 2: Calculate the Standard Deviation for both Stock A and Stock B

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