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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