Question: Consider the following information State Probability X Z Boom .25 15% 10% Normal .60 10% 9% Recession .15 5% 10% What are the expected return

Consider the following information

State              Probability         X         Z

Boom                  .25              15%     10%

Normal                .60             10%       9%

Recession           .15                5%     10%

What are the expected return and standard deviation for a portfolio with an investment of $6,000 in asset X and $4,000 in asset Z?

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