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

We know the following expected returns for stocks A and B, given different states of the economy: State (s) Probability E(AS) E(TB,s) Recession -0.02 0.03 Normal 0.13 0.06 Expansion 0.21 0.1 The expected return on the market portfolio is 0.06 and the risk-free rate is 0.02. Part 1 What is the standard deviation of returns for stock A? 3+ decimals Submit 0.2 0.5 0.3 Part 2 What is the standard deviation of returns for stock B? 1 Attempt 1/3 for 10 pts. Attempt 1/3 for 10 pts

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