2) State |State probability | A Expansion 0.4 Normal 0.3 Recession 0.3 |B|C | 19% | 8% | 12% | 15% | 6%, 7% | -10% | 2% | -1% a) Suppose one has constructed a portfolio consisting of stocks A, B and C. They have constructed the portfolio with 30% in stock A, 20% in stock B and 50% in stock C. Compute the expected return of the portfolio. (4 points) b) Compute the standard deviation of the expected returns for the portfolio. (5 points)