Assignment 1 calculate expected return and risk of the stocks individually and of the portfolio assumming A has 45% investment weight in the portfolio. (2) (1) State of Probability of State (3) Stock A Rate of Return (4) Stock B Rate of Return Economy of Economy If State Occurs If State Occurs Recession .10 -.20 .30 Normal .60 .10 .20 Boom .30 .70 .50 15/03 (2003 Assignment 1 calculate expected return and risk of the stocks individually and of the portfolio assumming A has 45% investment weight in the portfolio. (2) (1) State of Probability of State (3) Stock A Rate of Return (4) Stock B Rate of Return Economy of Economy If State Occurs If State Occurs Recession .10 -.20 .30 Normal .60 .10 .20 Boom .30 .70 .50 15/03 (2003 Assignment 1 calculate expected return and risk of the stocks individually and of the portfolio assumming A has 45% investment weight in the portfolio. (2) (1) State of Probability of State (3) Stock A Rate of Return (4) Stock B Rate of Return Economy of Economy If State Occurs If State Occurs Recession .10 -.20 .30 Normal .60 .10 .20 Boom .30 .70 .50 15/03 (2003 Assignment 1 calculate expected return and risk of the stocks individually and of the portfolio assumming A has 45% investment weight in the portfolio. (2) (1) State of Probability of State (3) Stock A Rate of Return (4) Stock B Rate of Return Economy of Economy If State Occurs If State Occurs Recession .10 -.20 .30 Normal .60 .10 .20 Boom .30 .70 .50