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		0.030		0.260		0.460
Growth		0.36		0.030		0.140		0.300
Stagnant		0.21		0.030		0.160		0.040
Recession		0.14		0.030		0.015		0.180

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

b.What is the portfolio's variance and standard deviation?

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

enter your response here

(Round to four decimal places.)

b. What is the portfolio's variance?

enter your response here

(Round to four decimal places.)

What is the portfolio's standard?

enter your response here

(Round to four decimal places.)