C bb.umflint.edu/webapps/assessment/take/launch.jsp?course_assessment_id=_441233____4550_men_=_8680416_ * Question Completion Status: with Unequal Probabilities States of the Economy and Stock Returns ab Security Returns if State Occurs State of Economy Recession Probability of State of Economy Starcents Jpod -20% 30% Boom 70 10 1.00 QUESTION #A: individual securities' expected return and standard deviation Suppose you thought a boom state would occur 20 percent of the time (So Recession probability = 1.00 - 0.20 = 0.80.) 1. What are the expected returns on Starcents, and Jpod, respectively? 2. If the risk-free rate is 10 percent, what are the risk premiums for Startcents and Jpod, respectively? 3. What is the standard deviation of Starcents and Jpod, respectively? QUESTION #B: portfolio's expected return and standard deviation Using the above two securities' information, you are forming a portfolio. Suppose you invest 30% into Starcents and 70% into Jpods 1. What is the expected return of this portfolio? 2. What is the standard deviation of this portfolio? TTTT Paragraph Arial 3 (12pt) E E III TT, & O fx Mashups T T - Click Save and Submit to save and submit. Click Save All Answers to save all answers. Type here to search W O 4 ABC HTML CSS Save W 35F Rain and s 3 PrtScn Home End Pg F8 F9 Y U 9