Find the expected return and standard deviation of a portfolio invested 40% in the stock fund and 60% in the bond fund by weighting the returns by the amount invested under each economic scenario.
		Portfolio invested 40% in stock fund and 60% in bond fund
		Rate	Column B	Deviation from		Column B
		of	x	Expected	Squared	x
Scenario	Probability	Return	Column C	Return	Deviation	Column F
Severe recession	0.05		0.00	0.0	0.00	0.00
Mild recession	0.25		0.00	0.0	0.00	0.00
Normal growth	0.40		0.00	0.0	0.00	0.00
Boom	0.30		0.00	0.0	0.00	0.00
		Expected return:	0.00		Variance:	0.00
					Standard deviation:	0.00

Stock Fund Bond Fund Deviation Rate of Variance (Squared Deviation) Column E Rate of Variance Column B Expected Expected (Squared X Return Deviatio Column I 9 Scenario 10 Severe recessio 11 Mild recession 2 Normal growth 13 Boom Prob. Column E 14 10 196 100 9.8 25 0.05 0.25 0.4 0.3 43.2 19.2 1.8 20.8 1866.24 368.64 3.24 432.64 93.312 92.16 1.296 129.792 316.6 17.8 15 12 31 -10 100 Variance SUM Variance: 68.4 15 Expected or Mean Return: Stocks 16 Expected or Mean Return: Bonds 10.2 Standard deviation = SQRT(Variance) Std. Dev