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) E(TB,s) 0.2 -0.01

Intro We know the following expected returns for stocks A and B, given different states of the economy: State (s) Probability E(ra,s) E(TB,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) E(TB,s) 0.2 -0.01 0.05 Recession Normal 0.5 0.14 0.08 Expansion 0.3 0.22 0.12 The expected return on the market portfolio is 0.09 and the risk-free rate is 0.02. Part 1 Attempt 2/10 for 8 pts. What is the standard deviation of returns for stock A? 3+ decimals Submit Part 2 Attempt 1/10 for 8 pts. What is the standard deviation of returns for stock B? 4+ decimals Missing answer Part 3 | Attempt 2/10 for 8 pts. What is the beta for stock A? 2+ decimals Previous answers: 1.97 Submit Part 4 | Attempt 2/10 for 8 pts. What is the beta for stock B? 2+ decimals Submit

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