PLEASE ANSWER PARTS $3$ AND $4$

Intro $=0\mathrm{.}2*0\mathrm{.}01+{0\mathrm{.}5}^{*}0\mathrm{.}04+{0\mathrm{.}3}^{*}0\mathrm{.}08$

$=0\mathrm{.}046$

Part $3$

What is the standard deviation of returns for stock $A?$

Try again

Part $4$

What is the standard deviation of returns for stock $B?$

Try again

We know the following expected returns for stocks A and $B,$ given different states

of the economy:

Part $1$

What is the expected return for stock $A?$

Correct $$

The expected return is the weighted average return across all states of the

economy:

$E(r_A)={\displaystyle \underset{s}{\overset{?}{}}}(p_{s}E(r_{A,s}))$

$={0\mathrm{.}2}^{*}(-0\mathrm{.}04)+{0\mathrm{.}5}^{*}0\mathrm{.}11+{0\mathrm{.}3}^{*}0\mathrm{.}19$

$=0\mathrm{.}104$