Question: 2. Portfolio Expected Return, Variance and Standard Deviation (8 points) Consider the following information on returns and probabilities: State Probability X Y Boom .25 15%

 2. Portfolio Expected Return, Variance and Standard Deviation (8 points) Consider

2. Portfolio Expected Return, Variance and Standard Deviation (8 points) Consider the following information on returns and probabilities: State Probability X Y Boom .25 15% 10% Normal .60 10% 9% Recession .15 5% 10% What are the expected return and standard deviation for a portfolio with an investment of $6,000 in asset X and $4,000 in asset Y

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