Only Question 7 and 9. Question 9: Find the Variance and Standard Deviation for the three stocks.

LO17. Calculating Returns and Standard Deviations. Based on the following information, calculate the expected return and standard deviation for the two stocks Rate of Return If State Occurs State of Economy Recession Normal Boom Probability of State of Economy 10 .50 40 Stock A 02 10 15 Stock B -.30 18 .31 LOi8. Calculating Expected Returns. A portfolio is invested 20 percent in Stock G, 35 percent in Stock J, and 45 percent in Stock K. The expected returns on these stocks are 9.2 percent, 11.1 percent, and 13.8 percent, respectively. What is the portfolio's expected return? How do you interpret your answer? Returns and Standard Deviations. Consider the following information LO29. State of Economy Boom Bust Probability of State of Economy 60 40 Rate of Return If State Occurs Stock B 02 16 Stock A 15 03 Stock C .34 .08