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1. Please use the following information to answer the questions below: State of Prob. Of State Economy of Economy Recession 0.20 Normal 0.50 Boom 0.30
1. Please use the following information to answer the questions below: State of Prob. Of State Economy of Economy Recession 0.20 Normal 0.50 Boom 0.30 Rate of Return if State Occurs Stock A Stock B -0.15 0.20 0.20 0.30 0.60 0.40 What are the expected returns and standard deviations for the two stocks? b. Using the information in the previous problem, suppose you have $20,000 total. If you put $15,000 in Stock A and $5,000 in Stock B, what will be the expected return and standard deviation of your portfolio
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