A. Compute the expected returns and standard deviation for each of these stocks

B. Based on your computation which stock has more total risk? Explain

C. Based on beta values as shown below, which stock you think has more systematic risk? Explain

You are considering the following stocks to be included in your portfolio. Analyse the expected returns and standard deviation of each stock with the possible states of economy Probability State of of State of 5 Economy economy Stock A Stock B Stock C Stock D Boom 0.2 0.35 0.42 0.29 0.45 Good 0.56 0.11 0.09 0.37 Poor 0.16 0.03 -0.03 0.02 -0.02 Bust 0.08 -0.15 -0.26 -0.12 -0.28 0.1 a.Compute the expected returns and standard deviation for each of these stocks b. Based on your computation which stock has more total risk? Explain c. Based on beta values as shown below, which stock you think has more systematic risk? Explain Stock A Stock B Stock C Stock D Beta 0.9 1.3 1.45 1.2