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) Recession 0.1 -0.04

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 0.1 -0.04 0.03 Normal 0.5 0.11 0.06 Expansion 0.4 0.19 0.1 What is the expected return for stock A

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