Question: 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) -0.1 0.02

We know the following expected returns for stocks A and B, given

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) -0.1 0.02 0.08 0.05 0.17 0.07 3+ decimals Recession 0.2 Normal 0.5 Expansion 0.3 Part 1 What is the expected return for stock A? BAttempt 1/5 for 2 pts.

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