Question: Question 6 7 pts What are the expected returns and standard deviations of the two stocks above? State of Economy Probability Stock ABC's return Stock

Question 6 7 pts What are the expected returns and standard

Question 6 7 pts What are the expected returns and standard deviations of the two stocks above? State of Economy Probability Stock ABC's return Stock XYZ's return Boom 20% 35% 0% Recession 80% 10% 10% E(RABC)=15%; Stdev(ABC)=6% ; E(RXYZ)=8%; Stdev(XYZ)=4%. E(RABC)=15%; Stdev(ABC)=10% ; E(RXYZ)=8%; Stdev(XYZ)=4%. E(RABC)=15%; Stdev(ABC)=10%; E(RXYZ)=8%; Stdev(XYZ)=2%. E(RABC)=15%; Stdev(ABC)=6% ; E(RXYZ)=8%; Stdev(XYZ)=2%

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