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Intro We know the following expected returns for stocks A and B, given different states of the economy: 3+ decimals State (s) Probability E(rA,s) E(rB,s)
Intro We know the following expected returns for stocks A and B, given different states of the economy: 3+ decimals State (s) Probability E(rA,s) E(rB,s) -0.1 0.01 0.08 0.05 0.18 0.07 Part 1 What is the expected return for stock A? Submit Recession 0.2 Normal 0.5 Expansion 0.3 BAttempt 2/10 for 8.5 pts
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