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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 E(TAS) E(TB,s) 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 E(TAS) E(TB,s) Recession 0.2 -0.1 0.04 Normal 0.5 0.08 0.05 Expansion 0.3 0.19 0.07 IB Attempt 1/2 for 10 pts. Part 1 What is the expected return for stock A? 3+ decimals Submit

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