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Intro We know the following expected returns for stocks A and B, given different states of the economy: State (s) Recession Probability E(TA,s) Ers,s) 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) Recession Probability E(TA,s) Ers,s) 0.2 -0.02 0.05 0.5 0.13 0.08 Normal Expansion 0.3 0.21 0.12 Part 1 IB | Attempt 1/10 for 10 pts. What is the expected return for stock A? 3+ decimals Submit IB Attempt 1/10 for 10 pts. Part 2 What is the expected return for stock B? 3+ decimals Submit

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