Question: Please show all work Expected Return, Variance and Standard Deviation of Individual Assets Consider the following information on returns and probabilities: State Probability X Y

Please show all work

Expected Return, Variance and Standard Deviation of Individual Assets

Consider the following information on returns and probabilities:

State Probability X Y

Boom .25 15% 10%

Normal .60 10% 9%

Recession .15 5% 10%

What are the expected return and standard deviation for Stock X and Stock Y?

Portfolio Expected Return, Variance and Standard Deviation

Consider the following information on returns and probabilities:

State Probability X Y

Boom .25 15% 10%

Normal .60 10% 9%

Recession .15 5% 10%

What are the expected return and standard deviation for a portfolio with an investment of $6,000 in asset X and $4,000 in asset Y?

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