Question 2 Read the information for 3 stocks X, Y and Z below. Rate of return when state occurs State of Economy Probability of State Stock X Stock Z 0.6 Boom 0.3 0.4 0.2 Stock Y 0.45 0.15 -0.3 Normal 0.5 0.2 0.08 -0.4 Recession 0 If your portfolio includes 35 percent of X, 40 percent of Y and 25 percent of Z, answer the following questions: (a) Calculate the portfolio expected return. (7 marks) (b) Calculate the variance and the standard deviation of the portfolio