Question: Problem 13-7 Calculating Returns and Standard Deviations [L01] Consider the following information: Rate of Return if State Occurs Probability of State State of Economy of

Problem 13-7 Calculating Returns and Standard Deviations [L01] Consider the following information: Rate of Return if State Occurs Probability of State State of Economy of Economy Stock A Stock B Recession .17 .05 -.21 Normal .62 .09 .08 Boom .21 .16 .25 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 [3. Stock A standard deviation b. Stock B standard deviation

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