Intro We know the following expected returns for stock A and the market portfolio, given different states of the economy: State (s) Probability E(rA,s) E(rms) Recession 0.3 -0.03 0.02 Normal 0.5 0.12 0.05 Expansion 0.2 0.2 0.09 The risk-free rate is 0.02. Part 1 BAttempt 1/5 for 10 pts. Assuming the CAPM holds (expected and required returns are the same), what is the beta for stock A? 1+ decimals Submit