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You have been given the following information: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B

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You have been given the following information: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Recession .17 .06 Normal .50 .09 .12 Boom .33 .14 .29 .17 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.) a. Stock A expected return Stock B expected return % % % b. Stock A standard deviation Stock B standard deviation %

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