Question: (40 points) Find the expected return and standard deviation of a portfolio that is invested 80% in Stock A and 20% in Stock B. States

(40 points) Find the expected return and standard deviation of a portfolio that is invested 80% in Stock A and 20% in Stock B.

States Probability of state Stock A's Return Stock B's Return

Boom 10% 30% 150%

Stagnation 90% 2% -50%

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