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Business, 23.07.2020 14:01 Bri0929

Suppose you have invested only in two stocks, A and B. You expect that returns on the stocks depend
on the following three states of economy, which are equally
likely to happen.
State of Economy Return on Stock A (%)
Return on Stock B (%)
Bear
7.3%
-4.7%
Normal
11.5
5.4
Bull
16.6
24.3
1. Calculate the expected return of each stock.
2. Calculate the variance and standard deviation for each stock

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