Question: What are the expected returns and standard deviations for these two stocks? Suppose you have $20,000 total.If you put $15,000 in Stock A and the
What are the expected returns and standard deviations for these two stocks? Suppose you have $20,000 total.If you put $15,000 in Stock A and the remainder in Stock B, what will be the expected return and standard deviation of your portfolio?If risk-free rate is 5%, whats stock As Sharpe ratio?

State of Economy Recession Normal Boom Probability of State of Economy .30 .50 Rate of Return If State Occurs Stock A Stock B -.15 .20 .20 .30 .60 .40 .20
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