Question: Intro We know the following expected returns for stock A and the market portfolio, given different states of the economy: State (s) Probability E(TA) E(rm,s)

Intro We know the following expected returns for stock A and the market portfolio, given different states of the economy: State (s) Probability E(TA) E(rm,s) Recession 0.2 -0.02 0.03 Normal 0.5 0.13 0.06 Expansion 0.3 0.21 0.1 The risk-free rate is 0.02. Attempt 1/10 for 10 pts. Part 1 Assuming the CAPM holds, what is the beta for stock A? 2+ decimals Submit

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