Question: need some help with this Intro We know the following expected returns for stock A and the market portfolio, given different states of the economy:

need some help with this

need some help with this Intro We know the following expected returns

Intro We know the following expected returns for stock A and the market portfolio, given different states of the economy: State (s) Probability E(TA,s) E(TM) Recession 0.3 -0.03 0.05 Normal 0.5 0.12 0.08 Expansion 0.2 0.2 0.12 The risk-free rate is 0.02. IB Attempt 3/10 for 10 pts. Part 1 1 Assuming the CAPM holds, what is the beta for stock A? 2+ decimals Submit

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