Question: 1. Below are the returns for two assets under different states of the economy. State Probability Asset 1 Asset 2 Boom 1/3 30% 12% Normal

1. Below are the returns for two assets under different states

1. Below are the returns for two assets under different states of the economy. State Probability Asset 1 Asset 2 Boom 1/3 30% 12% Normal 1/2 15% 9% Recession 1/6 0% 6% Find the expected return and standard deviation of a portfolio made up of 70% asset 1 and 30% asset 2

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