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

Scenario	Probability	Rate of Return
Recession	0.11	-3%
Normal Economy	0.41	5%
Boom	0.48	9%

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

Enter your answers below.

E(r) = 6.04 %

Std. Dev. = 3.690.01 %

b. The investor decides to diversify by investing $9,000 in Gryphon stock and $10,000 in Royal stock, which has an expected return of 10% and a standard deviation of 14%. The correlation coefficient for the two stocks' returns is 0.8. Calculate the expected return and standard deviation of the portfolio. Round your answers to 2 decimal places.

Enter your answers below.

E(r_p) = 8.12

Std. Dev. = 8.830.01

c. Suppose the investor decides to invest an additional $2,500 in a treasury bill yielding 5%. What will be the expected return and standard deviation of this portfolio.

Round your answers to 2 decimal places.

E(r_p) =

Std. Dev. =

please answer question c