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.

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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