state	prob	return asset A	return asset B
1	0.5	4.9%	4.9%
2	0.5	7.2%	4.0%

Calculate the variance of return of asset B.

state	prob	return asset A	return asset B
1	0.5	4.9%	4.9%
2	0.5	7.2%	4.0%

Calculate the variance of the rate of return on a portfolio with 1/2 of wealth invested in asset A and 1/2 of wealth invested in asset B.

state	prob	return asset A	return asset B
1	0.5	4.9%	4.9%
2	0.5	7.2%	4.0%

Calculate the standard deviation of the rate of return on a portfolio with 1/2 of wealth invested in asset A and 1/2 of wealth invested in asset B.

Portfolio returns 3 states

state i	probability of state i	return asset A in state i	return asset B in state i
1	0.3	-5%	24%
2	0.4	14%	11%
3	0.3	19%	-6%

Calculate the expected return of asset A.

Using the data displayed in Table 4.2 above, calculate the expected return of asset B.

Using the data displayed in Table 4.2 above, calculate the variance of return for asset A.

Using the data displayed in Table 4.2 above, calculate the variance of return for asset B.

Using the data displayed in Table 4.2 above, calculate the expected return on a portfolio with 1/2 of wealth invested in asset A and 1/2 of wealth invested in asset B.

Using the data displayed in Table 4.2 above, calculate the variance in the return of a portfolio with 1/2 of wealth invested in asset A and 1/2 of wealth invested in asset B.

Using the data displayed in Table 4.2 above, calculate the standard deviation in the return of a portfolio with 1/2 of wealth invested in asset A and 1/2 of wealth invested in asset B.