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Question 21 What is the standard deviation on a portfolio that is invested in 30 percent in stock S and 70 percent in stock T? State of Economy Probability of State of Economy Returns if State Occurs Stock S Stock T Boom 50% 19% 6% Normal 50% 11% 13% O 1.09% O 1.71% 0 2.48% O 1.25% 01.56% Question 17 Mike recently purchased a stock that is expected to earn 20 percent in a booming economy, 5 percent in a normal economy, and lose 35 percent in a recessionary economy. There is a 3 percent probability of a boom and a 77 percent chance of a normal economy. What is his expected rate of return on this stock? -3.40 percent 2.60 percent 3.50 percent 1.65 percent 0 -2.55 percent