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

Intro We know the following expected returns for stock A and the market portfolio, given different states of the economy: State (s) Probability EA EMd Recession 0.1 0.05 0.03 Normal 0.5 0.1 0.06 Expansion 0.4 0.18 0.1 The risk-free rate is 0.02. Part 1 Attempt 1/5 for 12 pts. B Assuming the CAPM holds, what is the beta for stock A? 2+ decimals Submit

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