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Consider the following two stocks. Probabilities (P) Stock a Stock b Recession P1 32% = -5% 1% ||Normal = P2 25% 5% -2% Boom P3

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Consider the following two stocks. Probabilities (P) Stock "a" Stock "b" Recession P1 32% = -5% 1% ||Normal = P2 25% 5% -2% Boom P3 43% 16% 22% What is the expected return of each stock? Enter your answers as a percentage rounded to 2 decimal places. Do not enter the percentage sign in your answer. Ta Number = Tb Number Click "Verify" to proceed to the next part of the question. This question has 4 parts (i.e., you will be clicking "Verify" 4 times)

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