Question: 3. What is expected return and standard deviation for a portfolio in which 75% is invested in auto stock and 25% is invested in gold

3. What is expected return and standard deviation for a portfolio in which 75% is invested in auto stock and 25% is invested in gold stock? Scenario Recession Normal Boom Probability 1/3 1/3 1/3 Rate of Return Auto Stock Gold Stock -8.0% 20.0% 5.0% 3.0% 18.0% -20.0% Expected Return Standard Deviation 5.0% 10.6% 1.0% 16.4%

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