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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
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 .25 .06 -20 Normal Boom .55 .20 .07 13 11 33 s 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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