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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 Recession Normal .61 Boom

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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 Recession Normal .61 Boom 24 .15 Stock A .04 .07 12 Stock B .15 .14 .31 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.) Next > 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 Stock A standard deviation Stock B standard deviation b. % %

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