Question: We know the following expected returns for stocks A and B, given different states of the economy: State(s) Probability E(As) E(ra) Recession 0.3 -0.03 0.02

We know the following expected returns for stocks A and B, given different states of the economy: State(s) Probability E(As) E(ra) Recession 0.3 -0.03 0.02 Normal 0.5 0.12 0.05 Expansion 0.2 0.2 0.09 1. What is the expected return for stock A? (3+ Decimal) 2. What is the expected return for stock B2 (4+Decimal) MacBOOK 30 FS

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