3. Consider the following information:,45 I weighted Probability Stock A State of Economy Boom Normal Bust 035 .2 Return if State occurs Stock B Stock C 0.55 0.09 -0.21 -0.42 0.36 0.17 0.25 0.55 0.20 0.15 0.25 0.09 Aug .3035 1,19 F.117 a) If your portfolio is invested 45% in stock A, 35% in stock B and 20% in stock C, what is the portfolio expected return and standard deviation? (7 points) b) If the risk-free rate, r=2.5%, what is the portfolio expected return in excess of Tr? (2 points) RELLO