FIN 413 > Chapter 5 Risk and Return Problem 17 Intro We know the following expected returns for stocks A and B, given different states of the economy: State (s) Probability E(TA,s) E(TB,s) Recession 0.2 -0.1 0.03 Normal 0.5 0.08 0.05 Expansion 0.3 0.15 0.07 IB Attempt 1/5 for 2 pts. Part 1 What is the expected return for stock A? 4+ decimals Submit