Question: Please fill in the blanks and calculate the expected return and standard deviation for two stocks: Stock A Stock B (0.19) Probability State 0.25 0.05

Please fill in the blanks and calculate the expected return and

Please fill in the blanks and calculate the expected return and standard deviation for two stocks:

Stock A Stock B (0.19) Probability State 0.25 0.05 Recession 0.50 0.06 0.14 Normal 0.25 Boom 0.10 0.34 Squared Deviation Return Return Product Deviation Product Stock A Probability Recession Normal Boom 0.0000 E(R) Variance Standard Deviation 0.00% Return Squared Deviation Deviation Stock B Return Product Product Probability Recession Normal Boom E(R) = Variance 0.0000 Standard Deviation 0.00%

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