Problem 11-7 Calculating Returns and Standard Deviations [LO 1] Consider the following information:

Rate of Return if State Occurs State of Probability of State Economy of Economy Stock A Stock B Recession .24 .030 .29 Normal .59 .110 .19 Boom .17 .180 .42

Requirement 1: Calculate the expected return for the two stocks. (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).)

Expected return E(RA) % E(RB) %

Requirement 2: Calculate the standard deviation for the two stocks. (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).)

Standard deviation A % B %