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(rB,s) recession. 0. 1 -0.01 0.01 normal. 0.5 0.14 0.04 expansion. 0.4 0.22 0.08

what is expected return for stock A

We know the following expected returns for stocks A and B, given different states of the economy