Ch.13 (Question 15-18) Suppose you have predicted the following returns for Stock X and Stock Y in two possible states of economy. The risk-free rate is 2%. State probability Stock X Stock Y boom 0.41 10% 4% recession 1% 6% 15. What are the expected returns of Stock X and Stock Y, E(Rx) and E(R)? 0.6 | 16. What is the risk premium of Stock Y? 17. What are the variance of retums of Stock X, Var(R.)? 18. What is the expected return of your portfolio if your portfolio consists of 50% of Stock X and 50% of Stock y2