Please answer question 2

FIN 340 Ch. 11 -Week 8 Use the following information to answer the questions: Stock A Stock B State of Economy Probability Price Dividend Price Dividend Recession Normal Boom 0.25 0.45 0.3 (in 1 yr) $135 $150 $162 $2 $2 $2 (in 1 yr) $45 $42 $39 $1.50 $1.50 $1.50 1. Calculate the expected return and standard deviation for each of the two stocks. The current price for Stock A is $142 and the current price for Stock B is $38. 2. If you were to form a portfolio in which you have 35% of the portfolio invested in Stock A, and 65% in Stock B, what would the expected return and standard deviation for the portfolio be