Question: please answer a,b for this finance q 3. Based on the following data; (a) calculate the expected return and the standard deviation of returns for
3. Based on the following data; (a) calculate the expected return and the standard deviation of returns for each stock. State of the Economy Probability Stock A Rate of Return Stock B Rate of Return Recession 0.2 4% -20% Normal Growth 0.65 8% 20% Boom 0.15 16% 60% I (b) Calculate the expected return and the standard deviation on the portfolio, where the portfolio is formed by investing 50% of the funds in Stock A and the rest in Stock B
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