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14. Following are the probability distribution of reruns of Stock X and Stock y under the three states of economy. State Probability Return on Stock

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14. Following are the probability distribution of reruns of Stock X and Stock y under the three states of economy. State Probability Return on Stock X Return on Stock Y Boom 0.3 15 40 Normal 0.4 25 25 Recession 0.3 10 5 Suppose an investor forms a portfolio of the two assets consisting of 40 percent funds in Stock X and 60 percent in Stock Y. What is the expected return on the portfolio? b. What is the standard deviation of the portfolio? a. 1 5 $

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