A	B
Boom	1/3	25%	1%
Normal	1/3	5%	5%
Recession	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 an equal weight invested in each of Asset A & Asset B. What is the expected return for the portfolio, E(Rp)? What is the expected standard deviation in returns for the portfolio