Question 2 3 points You are forming a portfolio consisting of three stocks You invest 25 in Stock A, 50 in Stock B and 25 in Stock C States, probabilities and returns are given in the table below State Probability Stock As return Stock Bs return Stock Cs return Boom 30 50 20 10 Normal 60 20 15 20 Recession 10 10 5 40 A Calculate the expected return on your portfolio Show details of your calculations below You may copy and paste a table from Excel below B Calculate the variance and standard deviation of your portfolio Show details of your calculations below You may copy and paste a table from Excel below

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Question: Question 2 3 points: You are forming a portfolio consisting of three stocks. You invest 25% in Stock A, 50% in Stock B and 25%

Question 2 3 points:

You are forming a portfolio consisting of three stocks. You invest 25% in Stock A, 50% in Stock B and 25% in Stock C. States, probabilities and returns are given in the table below:

State	Probability	Stock As return	Stock Bs return	Stock Cs return
Boom	30%	50%	20%	10%
Normal	60%	20%	15%	20%
Recession	10%	10%	5%	40%

A. Calculate the expected return on your portfolio. Show details of your calculations below. You may copy and paste a table from Excel below.

B. Calculate the variance and standard deviation of your portfolio. Show details of your calculations below. You may copy and paste a table from Excel below.

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