Question: Problem 19 Intro We know the following expected returns for stocks A and B, given different states of the economy: State (s) Recession Normal Probability

Problem 19 Intro We know the following expected returns for stocks A and B, given different states of the economy: State (s) Recession

Problem 19 Intro We know the following expected returns for stocks A and B, given different states of the economy: State (s) Recession Normal Probability E(ra,s) E(rs,s) 0.1 -0.02 0.05 0.5 0.13 0.08 Expansion 0.4 0.21 0.12 B Attempt 1/10 for 10 pts. Part 1 What is the expected return for stock A? 3+ decimals Submit B Attempt 1/10 for 10 pts. Part 2 What is the expected return for stock B? 3+ decimals Submit Part 2 IB Attempt 1/10 for 10 pts. What is the expected return for stock B? 3+ decimals Submit Part 3 Attempt 1/10 for 10 pts. What is the standard deviation of returns for stock A? 3+ decimals Submit Part 4 1 - Attempt 1/10 for 10 pts. What is the standard deviation of returns for stock B? 4+ decimals Submit

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