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

Scenario	Probability	Rate of Return
Recession	0.12	-2%
Normal Economy	0.49	7%
Boom	0.39	17%

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

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E(r) = Correct response: 9.82 %

This question has 6 parts (i.e., you will be clicking "Verify" 6 times)

Std. Dev. = Correct response: 6.380.01 %

The investor decides to diversify by investing $10,000 in Gryphon stock and $4,000 in Royal stock, which has an expected return of 10% and a standard deviation of 7.7%. The correlation coefficient for the two stocks' returns is 0.2. Calculate the expected return and standard deviation of the portfolio. Round your answers to 2 decimal places.

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