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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(r A,s ) E(r B,s

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 0.1 -0.01 0.04
Normal 0.5 0.14 0.07
Expansion 0.4 0.22 0.11

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?

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