Question: 3. (1pt) Calculate the expected return, variance, and standard deviations of stock A and stock B, and calculate the expected return of a weighted portfolio

3. (1pt) Calculate the expected return, variance, and standard deviations of stock A and stock B, and calculate the expected return of a weighted portfolio containing 30% of stock A and 70% of stock B. Assume each scenario happens equally likely. Please show work and formulas used.

Scenario Probability A B
Boom 1/3 20% -15%
Normal 1/3 10% 20%
Recession 1/3 -10% 15%

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