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intro We know the following expected returns for stocks A and B, given different states of the economy: State (s) Probability Eras) E(res) Recession 0.2

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intro We know the following expected returns for stocks A and B, given different states of the economy: State (s) Probability Eras) E(res) Recession 0.2 -0.1 0.02 Normal 0.5 0.08 0.05 Expansion 0.3 0.15 0.07 IB Attempt 1/6 for 10 pts. Part 1 What is the expected return for stock A? 3+ decimals Submit Part 2 What is the expected return for stock B? IB Attempt 1/6 for 10 pts. 3+ decimals Submit

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