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 economy	Rate of Return if state occurs Stock A	Rate of Return if state occurs Stock B
Recession	.30	.02	-.20
Normal	.55	.08	.13
Boom	.30	.13	.33

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