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

Consider the following information:

Rate of Return
if State Occurs
State of Economy Probability of State of Economy Stock A Stock B
Recession 0.25 0.05 –0.11
Normal 0.55 0.12 0.16
Boom 0.20 0.16 0.36

a. Calculate the expected return for the two stocks. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

b. Calculate the standard deviation for the two stocks. (Do not round your intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

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