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Consider the following two stocks. Probabilities (P) Recession Normal Boom P = 31% P2 = 25% 23 = 44% Stock A 5% 1% 20% Stock

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Consider the following two stocks. Probabilities (P) Recession Normal Boom P = 31% P2 = 25% 23 = 44% Stock "A" 5% 1% 20% Stock "B 1% -13% 27% The portfolio weights for stocks "A" and "B" are 0.15 and 0.85, respectively. What are the expected returns of stock "A" and "B"? Enter your answers as a percentage. Do not put the percent sign in your answers. Hound your answers to 2 DECIMAL PLACES E(ra) = 7.50 Correct responsal 7.510.01 Ero) 8.94 Correct response: 8.9410.01 Click "Verity to proceed to the next part of the question This questions has 4 parts (... you will be clicking "verly 4 times) What are the standard deviations of stocks 'Aand '? Enter your answers as a percentage. Do not put the percent sign in your answer. Round your answorto 2 DECIMAL PLACES SD Number SD Number

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