Consider a single period economy which can enter into one of two possible states (A, B). Each of these

states occurs with equal probability. In state A, a risky asset will have a net return of 0.5, while in state B it will have a net return of -0.2. There is also a risk-free asset with gross return Rf = 1.03. Then the stochastic discount factor is ________ for state A and ________ for state B. (Round results to 4 decimals)

The answers are 0.6380 and 1.3037

plz show me the whole calculation steps and the formula used to calculate SDF