Intro

We know the following expected returns for stocks A and B, given different states of the economy:

State (s)	Probability	E(rA,s)	E(rB,s)
Recession	0.3	-0.02	0.03
Normal	0.5	0.13	0.06
Expansion	0.2	0.21	0.1

What is the expected return for stock A?

What is the expected return for stock B?

(only need the answers to Part 3 and Part 4)

Part 3

What is the standard deviation of returns for stock A? (3+ decimals)

Part 4

What is the standard deviation of returns for stock B? (4+ decimals)