Intro We know the following expected returns for stocks A and B, given different states of the economy: 0.1 State (s) Probability E(ra,s) E(TB,s) Recession -0.04 Normal Expansion 0.19 0.12 0.05 0.5 0.11 0.08 0.4 Note: If you can, it is much faster to solve these problems in a spreadsheet. However, the answer cannot be had simply by using the built-in AVERAGE() or STDEV() functions. If you are somewhat familiar with Excel, you might look into the SUMPRODUCT() function which is widely used to calculate weighted sums. Part 1 JE Attempt 1/2 for 10 pts. What is the expected return for stock A? 3+ decimals Submit Part 2 Attempt 1/2 for 10 pts. What is the expected return for stock B? 3+ decimals Submit - Attempt 1/2 for 10 pts. Part 3 What is the standard deviation of returns for stock A? 3+ decimals Submit Attempt 1/2 for 10 pts. Part 4 What is the standard deviation of returns for stock B? 4+ decimals