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(Estimated time allowance: 25 minutes). The returns of 3 securities (stock A, stock b, and a corporate bond) are listed below. State Probability stock A

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(Estimated time allowance: 25 minutes). The returns of 3 securities (stock A, stock b, and a corporate bond) are listed below. State Probability stock A stock B Corp bond Boom 20% 15% 6% 9% Normal 50% 6% 2% 8% Bust 30% -2% -10% 6% You MUST use 4 digits in every calculation you do in order for your answer to be the same as the one in the system. When entering your answer, round to the nearest 0.01% but do not use or enter the sign %. For example, if your answer is 3.478% enter 3.48: if your answer is 0.12013 then enter 12.01 What is the expected return of a portfolio that is 30% in stock A, 60% in stock B and the rest in the corporate bond? What is the standard deviation of the portfolio that is 30% in stock A, 60% in stock B and the rest in the corporate bond? round answer to nearest 0.01% and do not enter the % sign. A

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