Calculate the following questions. Show all work and assumptions

Calculate the following questions. Show all work and assumptions State of Econom Recession Normal Boom Required: Probability of state 0.10 0.70 0.20 Retums if state occurs (%) -5 +15 +40 -5 +12 +28 BC -7.5 +15 +26 Calculate the expected return for each of the three stocks. A portfolio is constructed with 30% invested in BA, 25% in BB and 45% in BC. What is the expected return of this portfolio? What is the standard deviation of this portfolio? Based on the expected return of the portfolio in (ii), what is the risk-free interest rate, if the expected market return is 14% and the portfolio beta is 1.2.