Question: 2a. Based on the following information, calculate the expected return and standard deviation for the two stocks State of Economy Probability of State of Economy

2a. Based on the following information, calculate the expected return and standard deviation for the two stocks State of Economy Probability of State of Economy Ratof Return If State Occurs Stock A 04 09 17 17 12 27 15 Recession Normal Boom 30 2b. Calculate portfolio standard deviation for the following two stock portfolio where: weight in stock A is 40% std deviation of Stock A is 8.44% std deviation of Stock B is 9.69% covariance between Stock A and Stock B is -0.00796

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