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finance 433 (pricipal of invesment) Given the following information: State Probability X Y Boom .25 15% 10% Normal .60 10% 9% Recession .15 5% 10%

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Given the following information: State Probability X Y Boom .25 15% 10% Normal .60 10% 9% Recession .15 5% 10% Calculate the expected return and the standard deviation for X and Y respectively. What is the expected return for a portfolio with an investment of $6, 500 in asset X and $3, 500 in asset Y? Calculate the standard deviation for this portfolio using three methods: Use Formulas (5) and (6) Use Formula (10) Use Formula (11)

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