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19 Intro 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

19 Intro 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 -0.02 0.04 Normal Expansion 0.5 0.13 0.07 0.4 0.21 0.11 Part 1 What is the expected return for stock A? 3+ decimals Submit Attempt 2/10 for 8 pts. Part 2 What is the expected return for stock B? Attempt 1/10 for 10 pts. Part 3 What is the standard deviation of returns for stock A? Attempt 1/10 for 10 pts. 3+ decimals Submit Part 4 What is the standard deviation of returns for stock B? Attempt 1/10 for 10 pts. 4+ decimals Submit

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