Question: Intro We know the following expected returns for stocks A and B, given different states of the economy: State (s) Probability E(As) E(rs,s) Recession 0.1

Intro We know the following expected returns for stocks A and B, given different states of the economy: State (s) Probability E(As) E(rs,s) Recession 0.1 -0.01 0.02 Normal 0.5 0.14 0.05 Expansion 0.4 0.22 0.09 IB Attempt 1/10 for 10 pts. Part 1 What is the expected return for stock A? 3+ decimals Submit BB Attempt 1/10 for 10 pts. Part 2 What is the expected return for stock B? 3+ decimals Submit Attempt 1/10 for 10 pts. Part 3 What is the standard deviation of returns for stock A? 3+ decimals Submit I Attempt 1/10 for 10 pts. Part 4 What is the standard deviation of returns for stock B? 4+ decimals Submit

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