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9. You want to invest your money on three stocks of Toyota, Boeing, and Microsoft by constructing your own portfolio 30% of your investment is

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9. You want to invest your money on three stocks of Toyota, Boeing, and Microsoft by constructing your own portfolio 30% of your investment is on Toyota, 30% on Boeing and 40% on Microsoft. According to your investigation on stocks and economic condition, expected return on each stock by economic state of nature is as follows: STATE OF ECONOMY PROBABILITY TOYOTA RETURN BOEING RETURN MICROSOFT RETURN BOOM 0.4 18% 2% 19% NORMAL 0.6 196 12% 10% (1) What is the expected rate of return for this portfolio? (5pts) (2) Calculate the investment risk for this portfolio? (7pts) Round up your answer to TWO decimals in %

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