Question: Problem 4 (6 pts) Consider below the expected rate of return on Stock A and Stock B under different possible states of the economy State

Problem 4 (6 pts) Consider below the expected rate of return on Stock A and Stock B under different possible states of the economy State of the Economy High Growth Medium Growth No Growth Economic Slowdown: Recession Probability of Occurrence Expected Return on Stock Expected Return on Stock A in this State B in this State 0.15- 44% 32% 0.30- 30% 21% 0.25 129 8% 0.200 49 0.10. - 109 1% a. Calculate the expected rate of return for stock A and stock B. (2pts) b. Calculate the standard deviation for stock A and stock B. (4pts) *

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