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	-0.05	0.03
Normal	0.5	0.1	0.06
Expansion	0.4	0.18	0.1

Attempt 2/20 for 10 pts.

Part 1

What is the expected return for stock A?

Correct

Attempt 1/20 for 10 pts.

Part 2

What is the expected return for stock B?

Correct

Attempt 3/20 for 10 pts.

Part 3

What is the standard deviation of returns for stock A?

Submit

Attempt 1/20 for 10 pts.

Part 4

What is the standard deviation of returns for stock B?

Submit