29. Consider the following information. Your portfolio is invested 30 percent each in A and C, and 40 percent in B. What is the expected return and standard deviation of this portfolio? (10 marks) State of Probability of Rate of Return if State Occurs Economy State of Economy Stock A Stock B Stock Boom 0.15 0.30 0.45 0.33 Good 0.45 0.12 0.10 0.15 Poor 0.01 -0.15 -0.05 Bust 0.05 -0.06 -0.30 -0.09 0.35 30. An equity has a beta of 1.35 and an expected return of 16 percent. A risk-free asset currently carns 4 percent. You form a portfolio based on these two assets. a. If a portfolio of the two assets has a beta of 0.95, what are the portfolio weights? (5 marks) b. If a portfolio of the two assets has an expected return of 10 percent, what is its beta