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(a) A financial analyst covering Bank of America's stock has determined the following four possible returns given four different states of the economy over the next period.
Probability Return
0.10 -0.20
0.25 -0.05
0.40 0.15
0.25 0.30
(i) Calculate the expected return for Bank of America.
(ii) Calculate the (expected) standard deviation for Bank of America.
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