Expected return and standard deviation.

Use the following information to answer the questions:

a.What is the expected return of each asset (J, K and L) ? (round to four decimal places)

b.What is the variance and the standard deviation of each asset (J, K and L) ? (round to four decimal places)

c.What is the expected return of a portfolio with 12% in asset J, 48% in asset K, and 40% in asset L? (round to four decimal places)

d.What is the portfolio's variance and standard deviation using the same asset weights from part (c)? (round to four decimal places)

Hint: Make sure to round all intermediate calculations to at least seven (7) decimal places. The input instructions, phrases in parenthesis after each answer box, only apply for the answers you will type.

(Click on the following icon in order to copy its contents into a spreadsheet.) State of Economy Boom Probability of State 0.28 0.36 Return on Asset J in State 0.065 0.065 Return on Asset K in State 0.220 0.100 Return on Asset L in State 0.290 0.180 Growth 0.23 0.030 Stagnant Recession 0.065 0.065 0.090 -0.180 0.13 -0.120