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Consider the following information:    Rate of Return If State Occurs   State of Probability of   Economy...

Consider the following information:

  

Rate of Return If State Occurs
  State of Probability of
  Economy State of Economy Stock A Stock B
  Recession .20 .08 .15
  Normal .50 .11 .14
  Boom .30 .16 .31

  

a.

Calculate the expected return for Stocks A and B. (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 Stocks A and B. (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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