Question: ++++ 4. Consider the following information on returns and probabilities: State Probability X Z Portfolio Boom .25 15% 10% Normal .60 10% 9% Recession .15

++++ 4. Consider the following information on returns and probabilities: State Probability X Z Portfolio Boom .25 15% 10% Normal .60 10% 9% Recession .15 5% 10% What are the expected return and standard deviation for a portfolio with an investment of $6,000 in asset X and $4,000 in asset Z? Calculate expected return and SD on X and on Z separately, then compare them to the return and SD of the portfolio

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