Question: Based on the following information, calculate the expected return and standard deviation for Stock A and Stock B: State Of Economy Prob of State Stock

  1. Based on the following information, calculate the expected return and standard deviation for Stock A and Stock B:

State Of Economy

Prob of State

Stock A

Stock B

Recession

0.20

0.07

-0.05

Normal

0.45

0.09

0.12

Boom

0.35

0.17

0.27

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