State of Economy Probability of State of Economy Return on Stock J Return on Stock K

Bear $\mathrm{.}23\mathrm{.}013\mathrm{.}041$

Normal $\mathrm{.}58\mathrm{.}145\mathrm{.}069$

Bull $\mathrm{.}19\mathrm{.}225\mathrm{.}099$