Based on the following information regarding Stock one, Stock two and Stock three, 1. Calculate the expected return and standard deviation for the three-asset portfolio assuming the portfolio consists of the following weights: a) 1/3 of one, 1/3 of two, and 1/3 three (meaning equal amounts of each stock in the portfolio). b) 50% one, 40% two and 10% Three) 0% one, 0% two, 100% Three. Show your work and formula calculations in excel.

In which portfolio would you choose to invest? Which portfolio would you consider the least desirable portfolio of the 3 portfolios? Include a few sentences explaining your responses to both.

Economy	Prob	One	Two	Three
Boom	33.33%	-2.00%	19.00%	4%
Good	33.33%	4.00%	9.00%	4%
Poor	33.33%	18.00%	-5.00%	4%