Question: 27. Bete 1.2 wei 22. Expected return and standard deviation. Use the following information to answer the questions. Return on Asset R in State Return

 27. Bete 1.2 wei 22. Expected return and standard deviation. Use

27. Bete 1.2 wei 22. Expected return and standard deviation. Use the following information to answer the questions. Return on Asset R in State Return on Asset S in State Return on Asset T in Probability State of Economy of State 0.15 0.25 0.35 0.25 a. What is the expected return of each asset? 0.450 0.275 0.025 Boom 0.040 0.280 0.140 0.070 Growth0.040 0.040 Stagnant Recession 0.040 -0.035 -0.175 28. Expe Prob each b. What are the variances and standard deviations of each asset? c. What is the expected return of a portfolio with equal investment in all is pla 11% three assets

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