Question: 7. Calculating Returns and Standard Deviations Based on the following information, calculate the expected returns and standard deviations for the two stocks. Rate of Return

7. Calculating Returns and Standard Deviations Based on the following information,

7. Calculating Returns and Standard Deviations Based on the following information, calculate the expected returns and standard deviations for the two stocks. Rate of Return if State Occurs Probability of State of Economy State of Economy Stock A Stock B Recession .10 .02 -.30 Normal .50 .10 .18 Boom .40 .15 .31

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