State of economy probability of state of economy rate of, Financial Management

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State of economy probability of state of economy rate of

State of economy probability of state of economy rate of return stock A Rate of return stock B

recession .19 .10 -.14

normal .60 .13 .15

boom .21 .18 .32

A. calculate expected return for the two stocks

B. calculate the standard deviation for the two stocks

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Financial Management: State of economy probability of state of economy rate of

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