Calculate the expected return and standard deviation of a portfolio that is 50% invested in stock A and 50% invested in stock B. (Hint: You need to find the expected return and standard deviation of each stock and the covariance between these two stocks first)

State of Economy Probability Stock As return Stock Bs return

Recession 0.20 0.06 -0.20

Normal 0.55 0.07 0.13

Boom 0.25 0.11 0.33