1)

Given the following information, calculate the expected return and standard deviation for a portfolio that has 52 percent invested in Stock A, 19 percent in Stock B, and the balance in Stock C.(Round your answer to 2 decimal places. Omit the "%" sign in your response.)

				Returns
State of	Probability of
Economy	State of Economy			Stock A		Stock B		Stock C
Boom		.80		11	%	18	%	21	%
Bust		.20		14		0		-14

Expected return	%
Standard deviation	%

2)

Security Returns If State Occurs State of Economy Probability of State of Economy Roll Ross .20 80 -18% 18 21% Bust Boom Calculate the expected returns for Roll and Ross by filling in the following table (verify your answer by expressing returns as percentages as well as decimals; (Negative amounts should be indicated by a minus sign. Round your Economy and E(R) answer to 2 decimal and Product answer to 4 decimal places. Omit the "%" sign in your response.) Roll Ross State of Probability ofRetum If Retun if State Occurs Product Product Economy State of Economy State Occurs Bust Boom E(R) E(R) Refer eBook & Resources ences