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Just Part 3 and 4 Please Intro We know the following expected returns for stocks A and B. given different states of the economy State

Just Part 3 and 4 Please image text in transcribed
Intro We know the following expected returns for stocks A and B. given different states of the economy State (s) Probability E[tax) E[re.) Recession 0.3 -0.03 0.03 Normal 0.5 0.12 0.08 Expansion 0.2 0.2 0.1 IS Atempt 3/6 for 8 pts Part 1 What is the expected return for stock A? 0.0010 The expected return is the weighted average return across all states of the economy EC) (E(74,-)) = 0.3-0.03) +0.50.12-02-02 = 0.091 19 Attempt 115 for 10 pts Part 2 What is the expected return for stock B2 ) - ..). 03.003 -0.510.000 201 0.059 Attempt 215 for 10 pts Part 3 What is the standard deviation of returns for stock A? ma Submit Part 4 Attempts for 10 pts. What is the standard deviation of retums for stock B

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