Question: Intro We know the following expected returns for stocks A and B. given different states of the economy: State (s) Recession Normal Expansion Probability Eras)
Intro We know the following expected returns for stocks A and B. given different states of the economy: State (s) Recession Normal Expansion Probability Eras) E[re,s) 0.3 -0.03 0.03 0.5 0.12 0.06 0.2 0.2 0.1 IB Attempt 1/10 for 10 pts. Part 1 What is the expected return for stock A? 37 decimals Submit JO Attempt 1/10 for 10 pts. Part 2 What is the expected return for stock B? 3+ decimals Submit
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