Question: Based on the following information, calculate the expected return and standard deviation of a portfolio when you invest 40% in stock A and 60% in
Based on the following information, calculate the expected return and standard deviation of a portfolio when you invest 40% in stock A and 60% in stock B.
| State of Economy | Probability | Stock A | Stock B |
| Recession | 0.3 | 0.04 | -0.2 |
| Normal | 0.4 | 0.09 | 0.13 |
| Boom | 0.3 | 0.12 | 0.33 |
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