Question: PLEASE ANSWER BOTH Use the following information to answer the two questions below. State of Prob. of the the economy state of economy. Boom 0.40

 PLEASE ANSWER BOTH Use the following information to answer the two

PLEASE ANSWER BOTH

Use the following information to answer the two questions below. State of Prob. of the the economy state of economy. Boom 0.40 0.12 0.04 Bust 0.60 0.02 0.04 You MUST use 4 digits in every calculation you do in order for your answer to be the same as the one in the system. Enter answer using 4 decimals. Do not use or enter the %. For example, if your answer is 3.48% enter 0.035; if your answer is 0.12013 then enter 0.1201 What is the expected return of a portfolio with 30% in asset A and 70% in Asset B? 4.60 A/ What is the standard deviation of the portfolio with 30% in asset A and 70% in Asset B? A/ Rate of return if state occurs Stock A Stock B

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