Calculate the expected return for the two stocks

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Reference no: EM132026913

Consider the following information Economy probability of state of economy rate of return if state occurs. Recession .20 stock a .010 stock b -.35. Normal .55 stock A .090, Stock B .25. Boom .25 Stock A .240 and Stock B .48. Calculate the expected return for the two stocks. Calculate the standard deviation for the two stocks.

Reference no: EM132026913

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