Please note that 2.78 for question 1 part b is wrong and 1.50 for question 2 part a is wrong.

Consider the following information: Rate of Return if State Occurs State of Economy Recession Normal Boom Probability of State of Economy .35 .60 .05 Stock A .07 .12 . 17 Stock B - 20 .12 . 26 a. Calculate the expected return for the two stocks. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Answer is complete but not entirely correct. 10.50% Expected return for A Expected return for B (2.78) % % b. Calculate the standard deviation for the two stocks. (Do not round your intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Answer is complete but not entirely correct. Standard deviation for A Standard deviation for B 1.50 X % 16.06%