Question: Calculating returns and standard deviation- Based on the following information, calculate the expected return and standard deviation for the 2 stocks: State of economy Probability

Calculating returns and standard deviation- Based on the following information, calculate the expected return and standard deviation for the 2 stocks:

State of economy Probability of state of economy Rate of return if state occurs

Stock A Stock B

Recession .15 .02 -.30

Normal .55 .10 .18

Boom .30 .15 .31

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