Estimated Rate of Return on Alternative Investments
State of	Probability		High		U.S.	Market	2-Stocks
Economy	of State	T-Bills	Tech	Collections	Rubber	Portfolio	HT&Coll
Recession	0.1	8.0%	-22.0%	28.0%	10.0%	-13.0%
Below Average	0.2	8.0%	-2.0%	14.7%	-10.0%	1.0%
Average	0.4	8.0%	20.0%	0.0%	7.0%	15.0%
Above Average	0.2	8.0%	35.0%	-10.0%	45.0%	29.0%
Boom	0.1	8.0%	50.0%	-20.0%	30.0%	43.0%
E(R)		8.0%		1.7%	13.8%	15.0%
Standard Deviation		0.0%		13.4%	18.8%	15.3%

III. Calculate the E(R) of a portfolio consisting of 50% in High Tech and 50% in Collections.

IV. Calculate the standard deviation for the portfolio of High Tech and Collections. V. Why is the standard deviation of the potfolio of High Tech and Collections so small?