Problem 11-8 Calculating Returns and Standard Deviations (LO1, CFA2) Consider the following information: Rate of Return if State Occurs Probability of State of State of Economy Economy Recession 0.35 Normal 0.60 Boom 0.05 Stock A Stock B 0.07 -0.20 0.12 0.12 0.17 0.26 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.) Expected return for A Expected return for B % % 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.) Standard deviation for A Standard deviation for B % %