Question: PLEASE SHOW ALL CALCULATIONS THANKS Consider below the expected rate of return on Stock A and Stock B under different possible states of the economy:

PLEASE SHOW ALL CALCULATIONS THANKS

PLEASE SHOW ALL CALCULATIONS THANKS Consider below the expected rate of return

Consider below the expected rate of return on Stock A and Stock B under different possible states of the economy: State of the Economy Probability of Occurrence High Growth Medium Growth No Growth Economic Slowdown Recession 0.15 0.30 0.25 0.20 0.10 Expected Return on Stock A in this State 44% 30% 12% 3% -10% Expected Return on Stock B in this State 32% 21% 8% 4% 1% a. Calculate the expected rate of return for stock A and stock B. (2pts) b. Calculate the standard deviation for stock A and stock B. (4pts)

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