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You are comparing stock A to stock B. Given the following information, what is the percent difference in the expected returns of these two securities?

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You are comparing stock A to stock B. Given the following information, what is the percent difference in the expected returns of these two securities? (HINT: Find expected return of each stock and compare the 2) State of Economy Returns if State Occurs Probability of State of Stock A Stock B Economy 36% 14% 17% 64% -22% -28% Normal Recession 0 -1.74% 0 -2.31% 0 -2.85% 0 -1.68% 0 -2.76%

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