Assume you want to construct a portfolio of 60% Stock A and 40% Stock B. State of Rate of Probability of State Rate of Return Return Economy of Economy Stock A Stock B Boom .30 12% 20% Normal .50 8% 12% Recession .20 -5% - 10% Calculate the portfolio's Expected Return? 7.00% 7.8333% 17.80% 0 7.960% Assume you want to construct a portfolio of 60% Stock A and 40% Stock B. Rate of State of Probability of State Rate of Return Return Economy of Economy Stock A Stock B Boom .30 12% 20% Normal .50 8% 12% Recession .20 -5% -10% Calculate the portfolio's Standard Deviation? 7.8632% 16.7006% 11.8091% 61.8304%