What is the expected return on each stock, Financial Accounting

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What is the expected return on each stock

Problem

An investment adviser is considering investing in one of the following stocks:

State of the Economy	Likelihood of Occurrence	Rate of Return Share M	Rate of Return Stock P
Expansion	60%	18%	-8%
Recession	40%	-15%	22%

1. What is the expected return on each stock?
2. What will be the standard deviations for actions M and P?

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Financial Accounting: What is the expected return on each stock

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Financial Accounting: What is the expected return on each stock

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