Consider the following information: Rate of Return If State Occurs State of Economy Probability of State of
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Question:
Consider the following information:
Rate of Return If State Occurs
State of Economy Probability of State of Economy Stock A Stock B
Recession
Normal
Boom
Calculate the expected return for the two stocks. Do not round intermediate calculations. Enter your answers as a percent rounded to decimal places, eg
Expected return
Stock A
Stock B
Calculate the standard deviation for the two stocks. Do not round intermediate calculations. Enter your answers as a percent rounded to decimal places, eg
Standard deviation
Stock A
Stock B
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