Assume that you recently graduated and you just landed a job as a financial planner with the Cleveland Clinic. Your first assignment is to invest 100,000. Because the funds are to be invested at the end of one year, you have been instructed to plan for a one years holding period. Further your boss has restricted you to the following investment alternatives shown with their probability and associated outcomes.

State of Economy	Probability	T-Bills	Alta Inds.	Repo Men	American Foam	Market Port.
Recession	0.1	8.00%	-22.0%	28.0%	10.0%	-13.0%
Below Average	0.2	8.00%	-2.0%	14.7%	-10.0%	1.0%
Average	0.4	8.00%	20.0%	0.0%	7.0%	15.0%
Above Average	0.2	8.00%	35.0%	-10.0%	45.0%	29.0%
Boom	0.1	8.00%	50.0%	-20.0%	30.0%	43.0%

Barney Smith Investments Advisers recently issued estimate for the state of the economy and the rate of return on each state of the economy. Alta, Repo Men, American Foam. Barney also maintains an index fund which owns a market weight fraction of all publicly traded stock, you can invest in that fund and thus obtain average stock market results. given the situation as described, answer the following question: 1. Suppose you create a two stock portfolio by investing 50,000 in Alta industries and 50,000 in repo men. calculate the expected return, standard deviation, coefficient of variation, and beta for this portfolio. How does the risk of this two stock portfolio compare with the risk of the individual stock if they were held in isolation