Question: 1) What is the expected return for asset A? 2) What is the expected return for asset B? 3) What is the standard deviation for

1) What is the expected return for asset A?

2) What is the expected return for asset B?

3) What is the standard deviation for asset A?

4) What is the standard deviation for asset B?

5) What is the expected return of a portfolio that has 80% in Asset A and 20% in asset B?

State of Economy Probability of Asset A Rate State of of Return Economy 0.1 0.25 0.4 0.15 0.5 -0.08 Asset B Rate of Return 0.08 0.03 -0.01 Boom Normal Recession

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