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  3. an analyst has predicted the following returns for stock a...

Question: an analyst has predicted the following returns for stock a...

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An analyst has predicted the following returns for Stock A and Stock B in three possible states of the economy. State Probability A Boom Normal Recession 0.24 0.27 0.49 0.16 0.20 0.10 0.17 0.25 a. What is the probability of a recession? (Round your answer to 2 decimal places.) Probability 0.26 b. Calculate the expected return for Stock A and Stock B. (Round your answers to 2 decimal places) Expected Return Stocks A Stocks B c. Calculate the expected return for a portfolio that is invested 42% in A and 58% in B. (Round your answer to 2 decimal places.) Expected returne
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