Question: Based on the following information, calculate the expected return and standard deviation for Stock A and B. State of Economy Prob. Of State Stock A

Based on the following information, calculate the expected return and standard deviation for Stock A and B. State of Economy Prob. Of State Stock A Returns Stock B Returns Recession 0.2 0.04 -0.17 Normal 0.5 0.09 0.12 Boom 0.3 0.17 0.27 8. [4] Give the previous table. What is the expected return on an equally weighted portfolio of the two stocks? What is the variance of this portfolio

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