Question: Problem 13-7 Calculating Returns and Standard Deviations (LO1) Consider the following information: Probability of State of State of Economy Stock A Rate of Return

Problem 13-7 Calculating Returns and Standard Deviations (LO1) Consider the following information: Probability of State of State of Economy Stock A Rate of Return if State Occurs Stock B Economy Recession Normal 0.15 0.08 - 0.15 0.55 0.17 Boom 0.30 0.20 0.16 0.20 Calculate the expected return for each stock. (Do not round intermediate calculations. Round the final answers to 2 decimal places.) Expected return Stock A 14.05 * % Stock B 16.40 %6 Calculate the standard deviation for each stock. (Do not round intermediate calculations. Round the final answers to 2 decimal places.) Standard deviation Stock A 5.80 * % Stock B 4.52 %

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