Intro We know the following expected returns for stocks A and B, given different states of the economy: State (s) Probability Elras) E(TB,s) Recession 0.3 -0.03 0.04 Normal 0.12 0.07 Expansion 0.2 0.2 0.5 0.11 Part 1 What is the expected return for stock A? IB Attempt 1/10 for 10 pts. 0.091 Correct The expected return is the weighted average return across all states of the economy: E(+1) = (.E(..)) =0,3" (-0.03) + 0.5 0.12 +0.2.1? Part 3 What is the standard deviation of returns for stock A? Attempt 1/10 for 10 pts. 3+ decimals Submit Part 4 What is the standard deviation of returns for stock B? Attempt 1/10 for 10 pts. 4. decimals Submit