Question: Can you solve with details and please add a note and formulas,thank you. You own three stocks and have estimated the following joint probability distribution

Can you solve with details and please add a note and formulas,thank you.

You own three stocks and have estimated the following joint probability distribution of returns:

Market Condition

Probability of Occurence

Return on

Stock A

Return on

Stock B

Return on

Stock C

Return on

Stock D

Growth

35%

10

80

90

30

Normal

40%

40

20

10

30

Recession

25%

80

-10

-30

30

  1. Calculate the portfolios expected return and standard deviation if you invest 35% in Stock A, 35% in Stock B, 30% in Stock C. (20 points)
  2. Calculate the portfolios expected return and standard deviation if you invest 25% in Stock A, 25% in Stock B, 25% in Stock C, 25% in Stock D,. (20 points)

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