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 0.3 -0.03 0.02 Normal 0.5 0.12 0.05 Expansion 0.2 0.2 0.09 Attempt 1/10 for 10 pts. Part 1 What is the expected return for stock A?

Part 2 What is the expected return for stock B?

Part 3 What is the standard deviation of returns for stock A?

Part 4 What is the standard deviation of returns for stock B?