HW Ch $13($i$)$

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Consider the following information:

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point:

$\backslash$table$[[,$Probability of$,$Rate of Return $1,$If State Occurs$],[$State of Econony,State of Econony,Stock A$,$Stock $8],[$Recession$,.16,.04,-.20],[$Nornal$,.61,.08,.09],[$Boon$,.23,.15,.26]]$

a$.$ Calculate the expected return for Stocks A and B$.$

Note: Do not round intermediate calculations and enter your answers as a percent rounded to $2$ decimal places, e$\mathrm{.}9.,32\mathrm{.}16.$

b$.$ Calculate the standard deviation for Stocks A and B$.$

Note: Do not round intermediate calculations and enter your answers as a percent rounded to $2$ decimal places, e$.$g$..32\mathrm{.}16.$

Answer is complete but not entirely correct.

$\backslash$table$[[$a$.$ Stock A expected retum,$8970,\%],[$Slock B expected return,$3\mathrm{.}598,\%],[$b$.$ Stock A standard deviation,$8\mathrm{.}278,\%],[$Stock B standard deviation,$14\mathrm{.}160,\%]]$