Question: Question 4 (10 marks) Jim Roger is considering a small portfolio of two stocks and has provided you with the following information: Condition Probability Company

Question 4 (10 marks) Jim Roger is considering a small portfolio of two stocks and has provided you with the following information: Condition Probability Company A Company B Boom 0. 15 21% 10% Normal 0.75 12% 7% Recession 0.10 3% 8% Required: What are the expected return and standard deviation for the portfolio with an investment of $10,000 (Company A) and $10,000 (Company B)

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