There are three economy situations and two stocks. Information is as follows. Assume you have $10,000 and allocate $4,000 on stock A. Economy Stock A Stock B Booming 0.3 10% 20% Neutral ? 5% 0% Recession 0.5 0% -10% (Answer format: keep 1 digit after decimal point in %. For example, 1.56% -> 1.6%) 

a. What are the expected returns for both stock A ____ and B ____ , respectively? 

b. What is the standard deviation/ risk for stock A?_____ 

C. What is the expected portfolio? ____ 

d. What is the portfolio return when economy is booming? ________

Answer rating: 100% (QA)

a The expected returns for stock A and B are as follows Stock A 03 x 10 05 x 0 02 x 10 1 Stock B 03 ... View the full answer