a.What is the expected return of each asset?

b.What is the variance and the standard deviation of each asset?

c.What is the expected return of a portfolio with 10% in asset J, 53% in asset K, and 37% in asset L?

d.What is the portfolio's variance and standard deviation using the same asset weights from part (c)?

Hint: Make sure to round all intermediate calculations to at least seven (7) decimal places. The input instructions, phrases in parenthesis after each answer box, only apply for the answers you will type.

State of Economy Probability of State Return on Assets J Return on K Return on L

Boom 0.27 0.050 0.220 0.300

Growth 0.39 0.050 0.140 0.200

Stagnant 0.25 0.050 0.060 0.080

Recession 0.09 0.050 -0.060 -0.180