Question 9 (5 points) Suppose your expectations regarding the rate of return of stocks A and B are as follows: State of the economy Probability Return A Return B Boom 30% Recession 70% 20% 10% -5% If you decide to invest 40% in stock A and the remaining part in stock B, what would be your portfolio expected return and standard deviation? A. The expected return is -2.10% and standard deviation is -9.06% B. The expected return is 1.9% and standard deviation is 0.62% C. The expected return is 1.9% and standard deviation is 7.88% D. The expected return is 3.9% and standard deviation is -9.06% E None of the above 0.0196