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

We know the following expected returns for stocks A and B, given different states of the economy:

State (s) Probability E(rA,s) E(rB,s)
Recession 0.2 -0.06 0.03
Normal 0.5 0.09 0.06
Expansion 0.3 0.17 0.1

What is the expected return for stock B?

What is the standard deviation of returns for stock B?

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