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Consider the Following Probability Distribution for Stocks a and B

Question 76

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Consider the following probability distribution for stocks A and B:  State  Probability  Return on Stock A  Return on Stock B 10.158%8%20.2013%7%30.1512%6%40.3014%9%50.2016%11%\begin{array}{cccc}\text { State } & \text { Probability } & \text { Return on Stock A } & \text { Return on Stock B } \\1 & 0.15 & 8 \% & 8 \% \\2 & 0.20 & 13\% & 7\% \\3 & 0.15 & 12\%& 6\% \\4 & 0.30 & 14\%& 9\% \\5 & 0.20 & 16\% & 11 \%\end{array}
The standard deviations of stocks A and B are _____ and _____, respectively.


A) 1.56%; 1.99%
B) 2.45%; 1.66%
C) 3.22%; 2.01%
D) 1.54%; 1.11%

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