PROBLEM 3 Here is the probability distribution for stocks A and B, and the market State Probability Return A Return B Market Return 1% 0.5 0.5 weak market strong market Expected Return E(R) Variance Var (R) B 10% 5% ? ? ? 0% 20% ? ? ? 15% ? ? ? Fill the table above, specifically: Expected returns of A, B, and the market Market return variance and covariance with A and B returns Betas of A and B (extra credit). What stock, or a porttfolio of stocks A and B, would you buy