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. Consider the following information State Probability X Z Boom .20 25% 10% Normal .60 10% 9% Recession .20 5% 10% (a) What is the

. Consider the following information State Probability X Z Boom .20 25% 10% Normal .60 10% 9% Recession .20 5% 10% (a) What is the expected return and standard deviation for a portfolio with an investment of $5,000 in asset X and $5,000 in asset Z? (b) Calculate the expected return and standard deviation for stock X and stock Y individually. Which stock is better for investment and why?

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