Intro We know the following expected returns for stocks A and B, given different states of the economy: State (s) Probability E(TA,s) E(BS) Recession 0.1 -0.06 0.05 Normal 0.5 0.09 0.08 Expansion 0.4 0.17 0.12 Note: If you can, it is much faster to solve these problems in a spreadsheet. However, the answer cannot be had simply by using the built-in AVERAGE() or STDEV() functions. If you are somewhat familiar with Excel, you might look into the SUMPRODUCT() function which is widely used to calculate weighted sums. Part 1 IB Attempt 1/2 for 10 pts. What is the expected return for stock A? 3+ decima Submit Part 2 18 Attempt 1/2 for 10 pts. What is the expected return for stock B? 3+ decima Submit Part 3 | Attempt 1/2 for 10 pts. What is the standard deviation of returns for stock A? 3+ decima Submit Part 4 Attempt 1/2 for 10 pts. What is the standard deviation of returns for stock B? 4+ decima Submit