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

Problem 13-7 Calculating Returns and Standard Deviations (LO1) Consider the following information: Rate of Return if State Occurs State of Economy Probability of State of Stock A Stock B Economy Recession 0. 15 0. 11 0. 18 Normal 0. 55 0. 20 0. 19 Boom 0.30 0. 23 0. 23 Calculate the expected return for each stock. (Do not round intermediate calculations. Round the final answers to 2 decimal places.) Expected return Stock A % Stock B Calculate the standard deviation for each stock. (Do not round intermediate calculations. Round the final answers to 2 decimal places.) Standard deviation Stock A Stock B %

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