Consider the following information:

Invest 10% of your money in Asset A, 50% in Asset B, and 40% in Asset C:

StateProbabilityABC

Boom 0.450%40% 30%

Bust 0.6-20%10% 5%

1. What is the expected return and standard deviation for each asset?

2. What is the expected return and standard deviation for the portfolio?

3. Based on the information above, assume the beta for each assets A, B, and C is 0.2, 1.8, and 3.5

4. Which asset has highest systematic risk ?

5. Which asset has highest total risk?