Question: Problem 13-/ Calculating Returns and standard Deviations [LU] Consider the following information: Rate of Return if State Occurs Probability of State State of Economy Recession

 Problem 13-/ Calculating Returns and standard Deviations [LU] Consider the following

Problem 13-/ Calculating Returns and standard Deviations [LU] Consider the following information: Rate of Return if State Occurs Probability of State State of Economy Recession Stock B of Economy 17 Stock A .06 -17 Normal .50 .09 12 Boom .33 14 .29 a. Calculate the expected return for Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation for Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) a. Stock A expected return % a. Stock B expected return % b. Stock A standard deviation % b. Stock B standard deviation %

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