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We know the following expected returns for stocks A and B, given different states of the economy: State (s) Probability E(TA.s) E(TB,s) Recession 0.3 -0.02

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We know the following expected returns for stocks A and B, given different states of the economy: State (s) Probability E(TA.s) E(TB,s) Recession 0.3 -0.02 0.04 Normal 0.5 0.13 0.07 Expansion 0.2 0.21 0.11 Part 1 IB Attempt 1/5 for 10 pts. What is the expected return for stock A? 3+ decimals Submit Part 2 B Attempt 1/5 for 10 pts. What is the expected return for stock B? 3+ decimals Submit Part 3 Attempt 1/5 for 10 pts. What is the standard deviation of returns for stock A? 3+ decimals Submit Part 4 * Attempt 1/5 for 10 pts. What is the standard deviation of returns for stock B? 4+ decimals Submit

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