8. The table below shows the expected rates of return for three stocks and their weights in some portfolio: Stock A Stock B Stock C Portfolio weights0.4 0.2 Expected returns 0.03 0.05 0.4 State Recession Boom a. What is the portfolio return during a recession? Probability 0.3 0.7 0.07 0.12 0.13 0.14 b. What is the expected portfolio return? c. What is the standard deviation of the portfolio returns? 9. The table below shows the betas and portfolio weights for 3 stocks: Portfolio weights Stock Beta Portfolio 1 Portfolio 2 0.1 0.4 0.5 A 1.7 1.1 0.3 0.5 0.2 C 0.5 Calculate the beta of each portfolio. a. What is the beta of portfolio 1? b. What is the beta of portfolio 2? c. If you are more concerned about risk than return, which portfolio should you pick? O Portfolio 2 O Portfolio 1