Question: 2. Based on the following data; calculate the expected return and the standard deviation of returns for each stock State of the Economy Probability Stock

2. Based on the following data; calculate the expected return and the standard deviation of returns for each stock State of the Economy Probability Stock A Rate of Return Stock B Rate of Return Recession 0.25 6% -20% Normal Growth 0.45 7% 13% Boom 0.3 11% 33%

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