Short question (10 Marks) You are given the following estimates for Stock's A and B....

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Short question (10 Marks) You are given the following estimates for Stock's A and B. State of Economy Probability AB Poor 0.25 -5% -8% Normal 0.5 8% 10% Good 0.25 12% 22% A. What are the expected returns for stock's A and B respectively? (4 marks) B. What are the standard deviations for stock's A and B respectively? (4 marks) C. Which stock is riskier? Is there any relationship between risk and return if so state that in table (2 marks) *state formulas and calculations explicitly

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