Question: 1. 7. Calculating returns and standard deviations [LO 13.1] Based on the following information, calculate the expected return and standard State of Probability of economy

1. 7.

Calculating returns and standard deviations [LO 13.1] Based on the following information, calculate the expected return and standard

State of Probability of economy state of economy Rate of return if

State of Probability of economy state of economy Rate of return if state occurs Share A Share B Recession 0.10 0.04 -0.17 Normal 0.60 0.09 0.12 Boom 0.30 0.17 0.27

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