$3.$ Using the following table to answer parts a$)$ to c$).$

Recession Normal Boom

Probability $0\mathrm{.}10\mathrm{.}60\mathrm{.}3$

Stock INV $-10\%18\%25\%$

Stock DEV $-20\%20\%40\%$

a$)$ What are the expected rates of return for Stocks INV and DEV? $2$ marks

b$)$ What are the standard deviations of returns on Stocks INV and DEV? $5$ marks

c$)$ Assume you invest $$8,000$ in Stock INV and $$2,000$ in Stock DEV, what is the expected return on your portfolio? $2$ marks