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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 Elra,s) E(TB,s) Recession 0.1

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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 Elra,s) E(TB,s) Recession 0.1 -0.03 0.02 Normal 0.5 0.12 0.05 Expansion 0.4 0.2 0.09 - Attempt 1/1 for 10 pts. Part 1 What is the expected return for stock A? 3+ decimals Save Attempt 1/1 for 10 pts. Part 2 What is the standard deviation of returns for stock A? 3+ decimals Save

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