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You've estimated the following expected returns for a stock, depending on the strength of the economy: State (s) Probability Expected return 0.1 Recession -0.06 Normal
You've estimated the following expected returns for a stock, depending on the strength of the economy: State (s) Probability Expected return 0.1 Recession -0.06 Normal 0.5 0.05 Expansion 0.4 0.1 Attempt 1/5 for 10 pts. Part 1 What is the expected return for the stock? 3+ decimals Submit Attempt 1/5 for 10 pts. Part 2 What is the standard deviation of returns for the stock? 3+ decimals
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