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1. Use the following information to solve parts a-f: Returns State Prob AS BS Boom 0.1 0.25 0.18 Growth 0.2 0.10 0.20 Normal 0.5

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1. Use the following information to solve parts a-f: Returns State Prob AS BS Boom 0.1 0.25 0.18 Growth 0.2 0.10 0.20 Normal 0.5 0.15 0.04 Recession 0.2 -0.12 0.00 a. What is the expected return for stock AS? BS? b. What is the variance of the returns of stock AS? BS? c. What is the standard deviation of the returns of stock AS? BS? d. You plan to invest $3,000 in AS and $2,000 in BS. What are your portfolio weights? e. What is the expected return to the portfolio? f. What are the variance and standard deviation of the portfolio's returns?

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