Expected return and standard deviation. Use the following information to answer the questions.

State of Economy		Probability of State		Return on Asset R in State		Return on Asset S in State		Return on Asset T in State
Boom		0.29		0.035		0.300		0.470
Growth		0.36		0.035		0.140		0.330
Stagnant		0.21		0.035		0.180		0.035
Recession		0.14		0.035		0.035		0.160

a.What is the expected return of each asset?

b.What are the variance and the standard deviation of each asset?

c.What is the expected return of a portfolio with equal investment in all three assets?

d.What is the portfolio's variance and standard deviation using the same asset weights in part (c)?

Hint: Make sure to round all intermediate calculations to at least seven (7) decimal places.

Please be sure to show ALL work