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Compute the expected return and standard deviation

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Q: Based on the following information, compute the expected return and standard deviation for Stock A and Stock B.

Rate of Return if State Occurs

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

Recession 0.2 0.04 -0.21
Normal 0.6 0.08 0.13
Boom 0.2 0.12 0.33.

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Basic Statistics: Compute the expected return and standard deviation

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Basic Statistics: Compute the expected return and standard deviation

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