Consider the following information: State of Economy Recession Normal Boom Probability of State of Economy 20 57 23 a. Stock A expected return a. Stock B expected return b. Stock A standard deviation b. Stock B standard deviation Rate of Return if State Occurs Stock A Stock B .05 -.20 08 13 a. Calculate the expected return for Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation for Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g.. 32.16.) 09 26 % % %

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