6 (4 points) There are two assets you are considering combining into a portfolio You plan to hold this portfolio for one year The potential rates of return with associated probabilities are listed below for each asset Probability Peanut Butter Jelly Best 35 30 20 Middle 40 15 10 Worst 25 5 10 If you invest 60 of your money in Jelly and the remainder in Peanut Butter, what will be the expected return and standard deviation of portfolio Peanut Butter Jelly

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Question: 6. (4 points) There are two assets you are considering combining into a portfolio. You plan to hold this portfolio for one year. The potential

6. (4 points) There are two assets you are considering combining into a portfolio. You plan to hold this portfolio for one year. The potential rates of return with associated probabilities are listed below for each asset.

	Probability	Peanut Butter	Jelly
Best	35%	30%	20%
Middle	40%	15%	10%
Worst	25%	5%	-10%

If you invest 60% of your money in Jelly and the remainder in Peanut Butter, what will be the expected return and standard deviation of portfolio Peanut Butter & Jelly?

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