FINANCE QUESTION:

RE$-$POST: PLS SHOW CALCULATION WITH FORMULA $($NOT IN EXCEL$)$

You have been give this Probability distribution for the expected return of Stocks Bonds

Recession $0\mathrm{.}254\mathrm{.}5\%-2\%\%$

Normal growth $0\mathrm{.}455\%4\%$

Boom $0\mathrm{.}3015\%7\%$

a$.$ Calculate the expected rate of return of stock and bond

b$.$ Calculate the standard deviation for each investment?

c$.$ Compute the coefficient of variation?

d$.$ If an investor allocate $60\%$ of asset to stock and remaining to bond, what would be the investor$$s portfolio returns and standard deviation?

e$.$ Is there any diversification benefit achieved?