Question: Refer to the attachment, which provides expected returns for 2 assets- A & B for 3 different states of nature: Boom, Normal, & Recession. Each

Refer to the attachment, which provides expected returns for 2 assets-

Refer to the attachment, which provides expected returns for 2 assets- "A" & "B" for 3 different states of nature: Boom, Normal, & Recession. Each state is considered to be equally probable.

For each of the following calculations, express your answer in percentage terms, rounded to 2 decimal places (ie 22.00).

What is the expected return for Asset A, E(RA)?

What is the expectedstandard deviationin returns for Asset B?

Suppose that a portfolio is created with an equal weight invested in each of Asset A & Asset B.

What is the expected return for the portfolio, E(RP)?

What is the expectedstandard deviationin returns for the portfolio?

"A" & "B" for 3 different states of nature: Boom, Normal, &

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