Question: Calculate the expected return and standard deviation for a portfolio consisting of 30% in Ant Ltd and the remainder in Bell Ltd. Please explain your

Calculate the expected return and standard deviation for a portfolio consisting of 30% in Ant Ltd and the remainder in Bell Ltd.

Please explain your calculations thoroughly, showing all the formulas and calculations themselves. Please do not use excel.

State of economy

Probability of state

Rate of return Ant Ltd

Rate of return Bell Ltd

Recession

15%

2%

-30%

Normal

55%

10%

18%

Boom

???

15%

31%

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