Calculate the expected return for bank of america

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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.

Reference no: EM132790890

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