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A B Boom: 1 / 3 , 2 5 % , 1 % Normal: 1 / 3 , 5 % , 5 % Recessin: 1

A B
Boom: 1/3,25%,1%
Normal: 1/3,5%,5%
Recessin: 1/3,-5%,12%
Refer to the attachment, which provides expected returns for 2 assets-"A" & "B" for 3 different states of nature: Boom, Normal, & Recession. Each state is considered to be equally probable.
For each of the following calculations, express your answer in percentage terms, rounded to 2 decimal places (ie 22.00).
What is the expected return for Asset A,E(RA)?
%
What is the expected standard deviation in returns for Asset B?
%
Suppose that a portfolio is created with a 25% invested in Asset A and 75% invested in Asset B.
What is the expected return for the portfolio, E(RP)?
%
What is the expected standard deviation in returns for the portfolio?
%
Refer to the attachment, which provides expected returns for 2 assets-"A" & "B" for 3 different states of nature: Boom, Normal, & Recession. Each state is considered to be equally probable.
For each of the following calculations, express your answer in percentage terms, rounded to 2 decimal places (ie 22.00).
What is the expected return for Asset A,E(RA)?
%
What is the expected standard deviation in returns for Asset B?
%
Suppose that a portfolio is created with a 25% invested in Asset A and 75% invested in Asset B.
What is the expected return for the portfolio, E(RP)?
%
What is the expected standard deviation in returns for the portfolio?
%
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