Expected return and standard deviation.

Use the following information to answer the questions.

State of Economy		Probability of State		Return on Asset J in State		Return on Asset K in State		Return on Asset L in State
Boom		0.24		0.055		0.210		0.290
Growth		0.38		0.055		0.130		0.190
Stagnant		0.22		0.055		0.030		0.070
Recession		0.16		0.055		0.090		0.220

a.What is the expected return of each asset?

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

c.What is the expected return of a portfolio with 10% in asset J, 45% in asset K, and 45% in asset L?

d.What is the portfolio's variance and standard deviation using the same asset weights from part C