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in the following inte Stock A and Stock B 7. Calculating Returns and Standard Deviations LOI Based on the for mation, calculate the expected return and standard deviation for Stock A and Probability of State of Economy Rate of Return If State Occurs Stock A .04 Stock B -.17 State of Economy Recession Normal Boom 12 .60 .09 17 27 30 8. Calculating Expected Returns (L01] A portfolio is invested 25 percent in Sted G. 55 percent in Stock J. and 20 percent in Stock K. The expected returns on the stocks are 11 percent. 9 percent, and 15 percent, respectively. What is the portfolio expected return? How do you interpret your answer? 9. Returns and Variances [LOL] Consider the following information: State of Economy Probability of State of Econo Return If State Occurs Stock B Stock C 17 24 -05 -08 un Boom Bust 25 a. What is the expected return on an equally weighted portfolio of these three stocks, b. What is the variance of a portfolio invested 20 percent each in A and B am 60 percent in C? 10. Returns and Standard Deviations LOL Consider the following information State of Economy Probability of State of Economy Rate of Return If State Occurs Stock A Stock B Stock C .35 .40 .27 .16 .17 -.03 -.04 -.09 Boom Good Poor Bust 08 -18