Question: Calculating Returns and Standard Deviations Based on the following information, calculate the expected return and standard deviation for the two stocks: State Of economy Probability

Calculating Returns and Standard Deviations 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 returns if state occurs
		Stock A	Stock B
Recession	.25	.06	-.20
Normal	.55	.07	.13
Boom	.20	.11	.33

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