Intro You've estimated the following expected returns for a stock, depending on the strength of the economy: 0.083 Part 1 What is the expected return for the stock? State (s) Probability Expected return Recession -0.02 Normal 0.09 Expansion 0.14 3+ decimals 0.2 0.5 0.3 Correct Submit The expected return is the weighted average return across all states of the economy: E(r) = (p.E(r.)) = 0.2 (-0.02) + 0.5 0.09+0.3 0.14 = 0.083 BAttempt 4/10 for 10 pts. Part 2 What is the standard deviation of returns for the stock? Attempt 1/10 for 10 pts