Question: Problem 4 Intro We know the following expected returns for stocks A and B, given different states of the economy: State (s) Probability E(ra,s) E(rs,s)

Problem 4 Intro We know the following expected returns for stocks

Problem 4 Intro We know the following expected returns for stocks A and B, given different states of the economy: State (s) Probability E(ra,s) E(rs,s) Recession 0.2 -0.04 0.02 Normal 0.5 0.11 0.05 Expansion 0.3 0.19 0.09 Part 1 1B Attempt 1/5 for 10 pts. What is the expected return for stock A? 3+ decima Submit Part 2 IB Attempt 1/5 for 10 pts. What is the expected return for stock B? 3+ decima Submit Part 3 - Attempt 1/5 for 10 pts. What is the standard deviation of returns for stock A? 3+ decima Submit Part 4 Attempt 1/5 for 10 pts. What is the standard deviation of returns for stock B? 4+ decima Submit

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