Stock A's expected return is:

Stock B's expected return iis:

Stock A's standard deviation of returns is:

Stock B's standard deviation of returns is:

The table below summarizes information on the future returns on stocks A and B. Rate of Return if State of Economy Occurs State of Economy Thumbs up Normal Thumbs down Probability of State of Economy .20 .50 30 Stock A 03 .07 .16 Stock B -.20 .15 .33