7. You are planning to invest in the following two stocks. Your projection of the returns on these two stocks is as follows: State of the Economye Recessione Normale Boome Probability of Return on State Occurring Stock A 0.15 -5.0% 0.550 7.4% 0.30 12.9% Return on Stock Be 6.5% 8.3% 9.1% 11. Use six decimal places for your calculation. Show all work. a) Calculate the expected return on each stock. E() = E(ro) b) Calculate the variance of each stock. t 2 Var(w) = Or I Var() = Org 2