Question: need help on this asap Consider the following information: State of economy Rate of return if state occurs Probability of state of economy Stock X

need help on this asap need help on this asap Consider the following information: State of economy

Consider the following information: State of economy Rate of return if state occurs Probability of state of economy Stock X Stock Y Recession 0.2 0.06 -0.02 Normal 0.6 0.08 0.06 Boom 0.2 0.12 0.10 A) Calculate the expected return and standard deviation for the two stocks, B) Consider a portfolio in which 60% of your money is invested in stock X and 40% of your money is invested in stock Y. What the expected return and standard deviation of this portfolio? C) Based on your calculations in A) and B), explain what the diversification effect is

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