2. The following information is about two different shares of stock:

a. What are the expected returns on Assets A and B?

b. What are the expected standard deviations on Assets A and B?

2. The following information is about two different shares of stock: State of the World Probability of that Return on Asset A Return on Asset B state X .1 .08 .12 Z .18 .5 .13 .16 a. (10 points) What are the expected returns on Assets A and B? b. (15 points) What are the expected standard deviations on Assets A and B