Question: 10points Return to question Item6 Item 6 10 points Item Skipped Consider the following information: Rate of Return If State Occurs State of Economy Probability

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Consider the following information:

		Rate of Return If State Occurs
State of Economy	Probability of State of Economy	Stock A	Stock B
Recession	0.3	0.04	0.20
Normal	0.4	0.09	0.13
Boom	0.3	0.12	0.33

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 intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

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