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	0.48	10%
Boom	0.41	15%

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

Enter your answers below.

E(r) = Correct response: 10.62 %

Std. Dev. = Correct response: 5.330.01 %

This question has 3 parts (i.e., you will be clicking "Verify" 3 times)

The investor decides to diversify by investing $7,000 in Gryphon stock and $5,000 in Royal stock, which has an expected return of 4.5% and a standard deviation of 13.6%. The correlation coefficient for the two stocks' returns is 0.3. Calculate the expected return and standard deviation of the portfolio. Round your answers to 2 decimal places.

Enter your answers below.

E(r_p) = %

Std. Dev. = %

Std. Dev. = %