Problem 11-7 Calculating Returns and Standard Deviations [LO 11 Consider the following information: State of Economy Recession Normal Boom Probability of State - of Economy .20 Rate of Retur if State Occurs Stock A Stock B .035 .115 .190 -30 .60 .20 Requirement 1: Calculate the expected return for the two stocks. (Do not round Intermediate calculations answers as a percentage rounded to 2 decimal places (0.g., 32.16).) E(RA) E(RA) Expected return 13.4 % 20.6 % Requirement 2: Calculate the standard deviation for the two stocks. (Do not round intermediate calculati answers as a percentage rounded to 2 decimal places (e.g., 32.16).) Standard deviation 8.39 % 31.58 % Hints References eBook & Resources