Question: solve for question #3 with the part B and C 3. Based on the following data; (a) calculate the expected return and the standard deviation
3. Based on the following data; (a) calculate the expected return and the standard deviation of returns for each stock State of the Economy Recession Normal Growth Boom Probability Stock A Rate of Return Stock B Rate of Return 0.2 0.65 0.15 4% 8% 16% -20% 20% 60% (b) Calculate the expected return and the standard deviation on the portfolio, where the portfolio is formed by investing 50% of the funds in Stock A and the rest in Stock (C) Calculate the expected return and the standard deviation on the portfolio, where the portfolio is formed by investing 65% of the funds in Stock A and the rest in Stock B
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