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

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