Problem 11-1 Expected Returns (LO1, CFA1) Use the following information on states of the economy and stock returns to calculate the expected return for Dingaling Telephone: (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Probability Security of Return State of State of if State Economy Economy Occurs Recession . 45 -7.50% Normal . 15 16.00 Boom . 40 20.00 Expected returnProblem 11-12 Portfolio Variance (LO2, CFA5) Use the following information to calculate the expected return and standard deviation of a portfolio that is 30 percent invested in 3 Doors, Inc., and 70 percent invested in Down Co.: (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) 3 Doors, Inc. Down Co. Expected return, E(R) 18% 14% Standard deviation, o 48 50 Correlation .33 Expected return Standard deviation