Peter Pan is considering two securities, A and B, and the relevant information is given below:

State of Economy

Probability

Return on Security A (%)

Return on Security B (%)

Bear

0.6

3.0%

6.5%

Bull

0.4

15.0%

6.5%

1. Suppose Peter Pan invested $2,500 in Security A and $3,500 in security B. Calculate the expected return of his portfolio.

2. Calculate the standard deviation of Peter Pan's portfoli