FIN 318-Chaptser 11 Risk and Reture (R)-PR Expected Retum E(R) Stock A Stock B Rb Ra State () Recessias 0.25 20% | 30% Neutral 0.50 15% 15% 0.25 | 35% 1-10% Boom Vhat are the expected returas for Stocks A and B? Variance Find the variance and standard deyiation of stocks A and B? Stock A Return State (i) pO) Recession 0.25 Neutral 0.50 -20% 15% 35% 0.25 Room Stock B O) Return State ( Recession 0.25 Neutral50 Boom 0.2 30% 15% -10%