Problem 2 >> Intro We know the following expected returns for stocks A and B,...

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Problem 2 >> Intro We know the following expected returns for stocks A and B, given different states of the economy: State (s) Probability E(As) E('s,s) Recession 0.2 -0.1 0.01 Normal 0.5 0.08 0.05 Expansion 0.3 0.12 0.07 Part 1 IBAttempt 1/2 for 10 pts. What is the expected return for stock A? + decimals Submit

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