Given the data below calculate the expected return and standard deviation for a portfolio that is constructed by investing 50% in each stock. Discuss the results of your portfolio with that of the individual stocks with the data given below. If the risk-free rate is 3% and the market risk premium is 7% - are either of these stocks or the portfolio of stocks a good investment? Why?

		Return	Return
Economy	Probability	Stock A	Stock B
Great	15%	60%	-20%
OK	20%	30%	-5%
Average	40%	15%	0%
Poor	15%	-10%	10%
Recession	10%	-45%	30%
Beta		1.7	0.7

Stock	EXP (Return)	STDDEV	CV
A	15.00%	28.33%	1.89
B	0.50%	13.03%	26.06