Question: After extensive analysis, you predict the following returns for stocks A and B for three possible outcomes. Assume there are only three possible outcomes. Outcome

After extensive analysis, you predict the following returns for stocks A and B for three possible outcomes. Assume there are only three possible outcomes. Outcome Probability Annual return Stock A Stock B Boom 30% 15% 25% Normal 50% 10% 20% Recession 20% 2% 1% Calculate the following statistics: (1/1000 of one percent without % sign, e.g. 12.671, if a negative percentage, -9.56): 1) Expected return for stock A: 2) Expected return for stock B: 3) Standard deviation for stock A: 4) Standard deviation for stock B
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