Question: Intro We know the following expected returns for stocks A and B, given different states of the economy State (s) Probability E(ra,s) Ers,s) Recession 0.2

Intro We know the following expected returns for stocks A and

B, given different states of the economy State (s) Probability E(ra,s) Ers,s)

Intro We know the following expected returns for stocks A and B, given different states of the economy State (s) Probability E(ra,s) Ers,s) Recession 0.2 -0.01 0.01 Normal 0.5 0.14 0.04 Expansion 0.3 0.22 0.08 The expected return on the market portfolio is 0.09 and the risk-free rate is 0.02. - Attempt 1/10 for 10 pts Part 1 What is the standard deviation of returns for stock A? 3+ decimals Submit I Attempt 1/10 for 10 pts. Part 2 What is the standard deviation of returns for stock B? 4+ decimals Submit Part 3 B Attempt 1/10 for 10 pts. What is the beta for stock A? 2+ decimals Submit 18 | Attempt 1/10 for 10 pts. Part 4 What is the beta for stock B? 3+ decimals Submit Attempt 1/5 for 10 pts. Part 5 Which stock has more total risk? The stock with the lower beta The stock with the higher standard deviation The stock with the higher beta The stock with the lower standard deviation Submit Attempt 175 for 10 pts. Part 6 Which stock has more systematic risk? The stock with the higher beta The stock with the lower standard deviation The stock with the higher standard deviation The stock with the lower beta Submit

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