Consider the following information: Invest 10% of your money in Asset A, 50% in Asset B, and 40% in Asset C: State Probability A B C Boom 0.4 50% 40% 30% Bust 0.6 -20% 10% 5%

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

Expected return for asset A is:

Expected return for asset B is:

Expected return for asset C is :

Standard deviation for asset A is :

Standard deviation for asset B is :

Standard deviation for asset C is :

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

Expected return for the portfolio is _________________

Standard deviation for the portfolio is ______________________

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

4. Which asset has highest systematic risk ? ______________

5. Which asset has highest total risk? ______________