There is a 42 probability of a below average economy and a, Ask an Expert

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There is a 42% probability of a below average economy and a 58% probability of an average economy. If there is a below average economy stocks A and B will have returns of 1% and -9%, respectively. If there is an average economy stocks A and B will have returns of 14% and 14%, respectively. Calculate the expected returns and standard deviations of stocks A and B.

Stock A Expected Return (4 decimals) =

Stock B Expected Return (4 decimals) =

Stock A Standard Deviation (4 decimals) =

Stock B Standard Deviation (4 decimals) =

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Financial Management, Finance

Category:- Financial Management
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