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

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

State of economy Probability of State of Economy Rate of Return if State Occurs

Stock A Stock B

Recession: .20 .06 -.20

Normal: .55 .07 .13

Boom: .25 .11 .33

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