Question: State Probability Return A Return B Good 0.3 24% 30% Normal 0.4 36% 18% Bad 0.3 48% -6% Calculate the expected return and standard deviation

State Probability Return A Return B

Good 0.3 24% 30%

Normal 0.4 36% 18%

Bad 0.3 48% -6%

Calculate the expected return and standard deviation of a portfolio comprised of stocks A and B. The weight in stock A is 60%

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