A. If your portfolio is invested 40% each in stock A and B, and 20% in stock C, what is the portfolio expected return? B. What is the standard deviation of the portfolio in the question above?

\begin{tabular}{lcccc} \hline State of & Probability of & \multicolumn{3}{c}{ Rate of Return if State Occurs } \\ \cline { 3 - 5 } Economy & State of Economy & Stock A & Stock B & Stock C \\ \hline Boom & 0.25 & 21% & 33% & 55% \\ Normal & 0.60 & 17% & 11% & 9% \\ Bust & ? & 0% & 21% & 45% \\ \hline \end{tabular}