A portfolio is invested 30 percent in both Stocks A and C, and 40 percent in Stock B. The risk free rate is 2.5%. The following table contains the return and probabilities for the states of the economy.

Rate of Return if State Occurs:

State of Economy	Probability of State Occurring	Stock A (%)	Stock B (%)	Stock C (%)
Boom	0.08	15.6	13.2	12.9
Normal	0.87	11.2	9.6	8
Recession	0.05	2.5	1.2	5.6

What is the expected return of the portfolio?	Arrastre la respuesta aqu
What is the standard deviation of the portfolio?