b. There are two assets and three states of the economy: Probability of State of Economy State of Economy Recession Normal Boom 0.25 0.40 0.35 Rate of Return Stock A -0.18 0.25 0.5 1. What are the expected returns and standard deviations for these two stocks? II. Suppose you have $60,000 total. If you put $20,000 in Stock A and the remainder in Stock B, what will be the expected return and standard deviation of your portfolio? Stock B 0.25 0.35 0.40 c. You own a portfolio equally invested in a riskfree asset and two stocks. If one of the stocks has a beta of 1.50 and the total portfolio is equally as risky as the market, what must the beta be for the other stock in your portfolio?