Question: I know this is a long question, but please take your time to help me! this is a part of my huge grade! I put
I know this is a long question, but please take your time to help me! this is a part of my huge grade! I put it in order so its easier, please also answer in order and highlight/ underline the answer! thank you 

Question 1 6 pts 1a. There are three economy situations and two stocks. Information is as follows. Economy Stock A Stock B Booming 0.3 10% 20% Neutral ? 5% 0% Recession 0.4 0% - 10% To compute the expected return of stocks, in the following, which formula is correct? A PXR+ P2 X R2 + P3 x R3 B. PXR+ P2 X R2 To compute risk of stocks, in the following, which formur We To compute risk of stocks, in the following, which formula is correct? A. PX(R- E(R)} + P3 (R, - E() B. VP. (R- E(R) + P, X(R2 - E (I What is the probability of neutral situation? (use decimal) 1b. There are two economy situations and three stocks. Information is as follows. Economy Stock A Stock B Stock Booming 0.2 10% 20% 5% Recession? 0% -10% 2% To compute the expected return of stocks, in the following, which formula is correct? To compute the expected return of stocks, in the following, which formula is correct? A. Pi XR + B x R2 + P3 x Rz B. Pi XR + P. XR To compute risk of stocks, in the following, which formula is correct? A. PAX (R1 E (R)? + P2 X (R2 E () B. P. X(R. - E(R))? + P, X (R2 - E (1 What is the probability of recession situation? se decimal)
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