3. The stock of GE sells for $40/share. Its likely dividend payout and end-of-year price depend on the state of the economy as follows:

	Probability	Dividend	Stock Price
Boom	1/3	$2	$50
Normal	1/3	$1	$43
Recession	1/3	$0.5	$34

_{b) A portfolio invested half in GE and half in Treasury Bill with 4% return. Calculate the expected return and standard deviation of this portfolio.}