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You have been given the following information about Zambia. The probability of the state of the economy is also provided to you. There are
You have been given the following information about Zambia. The probability of the state of the economy is also provided to you. There are two stocks A and B. You need to invest in the following stocks. Develop a comprehensive analysis of the economy to find the expected return for the two stocks? Rate of Return if State Occurs Probability of State of State of Stock A Economy Economy Stock B Recession .17 .06 -.17 Normal .50 .09 .12 Boom .33 .14 .29 a. Calculate the expected return for the two stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation for the two stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
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