Question: Based on the following information, calculate the expected return and standard deviation for two stocks: State of the Economy Probability Rate of Return Stock A

Based on the following information, calculate the expected return and standard deviation for two stocks:

State of the Economy Probability Rate of Return Stock A Rate of Return Stock B
Recession .25 .05 -.19
Normal .50 .06 .14
Boom .25 .10 .34

Fill in the value in the spreadsheet.

Based on the following information, calculate the expected return and standard deviation

Input area State ProbabilityStock A Stock B Recession Normal 0.25 0.50 0.25 0.05 0.06 0.10 (0.19) 0.14 0.34 Boom Output area Return Squared Deviation Deviation Product Stock A Recession Normal Boom Probability Return Product E(R)- 0.0000 Variance Standard Deviation 0.00% Return Squared DeviationDeviation Stock B Probability Return Product Product Recession Normal Boom E(R)- 0.0000 Variance Standard Deviation | 0.00%)

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