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Assume you have predicted the following returns for Stock A and B in four possible states of the economy. What is the expected return of each stock? Calculate the variance and standard deviation for Stocks A and B.

State	Probability	Stock A Return	Stock B Return
Expansion	.15	22%	17%
Normal	.50	15%	12%
Mild Recession	.20	5%	2%
Recession	.15	1%	-2%

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