Calculate the standard deviation for the two stocks

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Reference no: EM131328184

Consider the following information:

                                                                                                                 Rate of Return If State Occurs

State of Economy                          Probability of State of Economy              Stock A              Stock B

 Recession                                                       .25                                            .03                  –.11

 Normal                                                            .30                                           .10                     .17

 Boom                                                             .45                                            .12                     .37

a. Calculate the expected return for the two stocks. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

  Expected return for A %

  Expected return for B %

b. Calculate the standard deviation for the two stocks. (Do not round your intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

  Standard deviation for A %

  Standard deviation for B %

Reference no: EM131328184

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