Intro We know the following expected returns for stocks A and B, given different states of the economy: State (s) Recession Normal Expansion Probability E(ra,s) E(rs,s) 0.2 -0.01 0.04 0.5 0.14 0.07 0.3 0.22 0.11 The expected return on the market portfolio is 0.08 and the risk-free rate is 0.02. Part 1 Attempt 1/10 for 10 pts. What is the standard deviation of returns for stock A? 3+ decimals Submit Attempt 1/10 for 10 pts. Part 2 What is the standard deviation of returns for stock B? 4+ decimals Submit Part 3 JB Attempt 1/10 for 10 pts. What is the beta for stock A? 2+ decimals Submit Part 4 1B Attempt 1/10 for 10 pts. What is the beta for stock B? 2+ decimals Submit Part 5 | Attempt 1/5 for 10 pts. Which stock has more total risk? O The stock with the lower beta O The stock with the higher standard deviation The stock with the higher beta The stock with the lower standard deviation Submit 18 Attempt 1/5 for 10 pts. Part 6 Which stock has more systematic risk? O The stock with the lower beta O The stock with the higher standard deviation The stock with the lower standard deviation The stock with the higher beta Submit