Question: Question 2 (1 point) There are two states of the economy: Boom and Recession where the probability of boom is 40%. Calculate the expected return
Question 2 (1 point) There are two states of the economy: Boom and Recession where the probability of boom is 40%. Calculate the expected return of stock A if it is expected to gain 15% if boom occurs and loses 5% if recession occurs. 5% 4% 3% 2% Question 3 (1 point) There are three states of the economy: Boom Normal and Recession where the probability of each state is 30% 30% and 40% respectively. Calculate the volatility of stock Af it is expected to have 10% return in boom 2% return in normal and -6% Peturn in recession: O
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