11.3. Below are the expected returns from both stocks based on the probability of economic conditions. It is desired to create a portfolio from two stocks. It is decided to invest 30% in stock A and 70% in stock B. Stock A State ) Recession Neutral Boom p(i) 0.50 0.40 0.10 1.00 E(R) 40% 15% 30% State (1) Recession Neutral Boom pi) 0.5 0.40 0.1 1.00 Stock B E(R) 40% 15% -20% a- Find the expected return and standard deviation of this portfolio? b- If you were a portfolio manager, what type of investors do you recommend this portfolio and why? C- Explain why the beta of the market is always equal to 1 and beta of a treasury bill equal to 0