Question: Intro We know the following expected returns for stocks A and B, given different states of the economy: Part 1 Attempt 2/5 for 10 pts.

Intro We know the following expected returns for stocks A and B, given different states of the economy: Part 1 Attempt 2/5 for 10 pts. What is the expected return for stock A? Correct The expected return is the weighted average return across all states of the economy: E(rA)=s(psE(rA,s))=0.3(0.05)+0.50.1+0.20.18=0.071 Part 2 E - Attempt 1/5 for 10 pts. What is the expected return for stock B? Correct E(rB)=(p,E(rB,))=0.30.04+0.50.07+0.20.11=0.069 Part 3 (*) Attempt 4/5 for 10 pts. What is the standard deviation of returns for stock A ? Part 4 - Attempt 1/5 for 10 pts. What is the standard deviation of returns for stock B

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