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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 Recession 0.2 -0.01 Normal
You've estimated the following expected returns for a stock, depending on the strength of the economy: State (s) Probability Expected return Recession 0.2 -0.01 Normal 0.5 0.1 Expansion 0.3 0.15 IB Attempt 1/5 for 2 pts. Part 1 What is the expected return for the stock? 3+ decimals Submit Attempt 1/5 for 2 pts. Part 2 What is the standard deviation of returns for the stock? 3+ decimals
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