Question: (Use the following data to answer the next three questions.) State of Economy Recession Normal Boom Probability of State of Economy 0.20 0.50 0.30 Stock

(Use the following data to answer the next three questions.) State of Economy Recession Normal Boom Probability of State of Economy 0.20 0.50 0.30 Stock A 0.06 0.08 0.16 Stock B -0.19 0.16 0.34 11. What is the expected return on Stock A? a. 8.4% c. 12.1 b. 10.0% d. 14.2% 12. What is the standard deviation of return on Stock B? a. 7.62% c. 13.11% b. 12.07% d. 18.43% 13. Which is riskier? a. Stock A is riskier. c. They have the same risk b. Stock B is riskier. d. Both are risk-free

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