1.

Following are three economic states, their likelihoods, and the potential returns:

Economic State		Probability		Return
Fast growth		0.32		42	%
Slow growth		0.34		19
Recession		0.34		45

Compute the expected return and standard deviation. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

3. If you own 800 shares of Xerox at $18.54, 900 shares of Qwest at $9.35, and 700 shares of Liz Claiborne at $45.93, what are the portfolio weights of each stock? (Round your answers to 3 decimal places.)