You've estimated the following expected returns for a stock, depending on the strength of the economy: State (s) Probability Expected return Recession 0.3 -0.01 Normal 0.5 0.1 Expansion 0.2 0.15 00 Attempt 1/10 for 10 pts. Part 1 What is the expected return for the stock? .077 Correct The expected return is the weighted average return across all states of the economy E(R) = (.E(R.)) = 0.3 * (-0.01) + 0.5 0.1 +0.2.0.15 = 0.077 Attempt 1/10 for 10 pts. Part 2 What is the standard deviation of returns for the stock? 3+ decimals Submit