An investor is considering the purchase of Gryphon stock, which has returns given in the table below.

Scenario Probability Rate of Return

Recession $0\mathrm{.}242\%$

Normal $0\mathrm{.}526\%$

Boom $0\mathrm{.}2414\%$

Calculate the expected return and standard deviation of Gryphon. Round your answers to $2$ decimal places.

Enter your answers below.

E$($r$)=$

$6\mathrm{.}96$

Correct response: $6\mathrm{.}96\backslash$pm $0\mathrm{.}01\%$

Std$.$ Dev. $=$

$4\mathrm{.}27$

Correct response: $4\mathrm{.}28\backslash$pm $0\mathrm{.}01\%$

This question has $2$ parts $($i$.$e$.,$ you will be clicking "Verify" twice$)$

The investor decides to diversify by investing $$7,000$ in Gryphon stock and $$3,000$ in Royal stock which has an expected return of $7\mathrm{.}5\%$ and a standard deviation of $15\%.$ The correlation coefficient for the two stocks' returns is $0\mathrm{.}6.$ Calculate the expected return and standard deviation of the portfolio. Round your answers to $2$ decimal places. Use the correct answers from the previous question.

Enter your answers below.

E$($rp$)=$

Number

$\%$

Std$.$ Dev $=$

Number