Nautilus Clothing's stock has a 60% chance of producing a 15% return, a 20% chance of producing a 17% return, and a 20% chance of producing a -6% return.

What is the stock's expected return?

We know the following expected returns for stocks A and B, given different states of the economy:

State (s)	Probability	E(rA,s)	E(rB,s)
Recession	0.2	-0.1	0.04
Normal	0.5	0.08	0.05
Expansion	0.3	0.17	0.07

What is the expected return for stock A?

The following table shows realized rates of return for two stocks.

	A	B	C
1	Year	Stock A	Stock B
2	1	14%	13%
3	2	-28%	-14%
4	3	-6%	-7%
5	4	5%	28%
6	5	14%	8%
7	6	11%	5%

What was the arithmetic average return for stock B?