Question: 6 S13-07 Calculating Returns and Standard Deviations [LO1] Consider the following information: 14 oints eBook Hint Rate of Return if State Occurs Probability of

6 S13-07 Calculating Returns and Standard Deviations [LO1] Consider the following information:

6 S13-07 Calculating Returns and Standard Deviations [LO1] Consider the following information: 14 oints eBook Hint Rate of Return if State Occurs Probability of State State of Economy of Economy Stock A Stock B Recession 15 .04 -.17 Normal Boom .55 .09 12 .30 .17 .27 Ask Print References a. Calculate the expected return for--Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation for Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) a. Stock A expected return a. Stock B expected return b. Stock A standard deviation b. Stock B standard deviation 10.60 % 12.15% % %

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