Fiona has three investment opportunities. She can invest in 3-Month T-Bill, Large Company Stock, and Small Company Stock. She diversifies her investment on an equally-weighted portfolio (puts 33.33% (1/3) of her money into each asset).

States of the Economy	Probability of the State	3-Month T-Bill	Large-Company Stock	Small-Company Stock
Boom	0.3	3	12	30
Steady	0.5	3	6	18
Recession	0.2	3	0	9

a. What is the expected return (payoff) of her portfolio

b. What is the standard deviation of her portfolio?

c. An investor, Mr. White, recommends her to invest all of her money into Large Company stocks. Do you agree with him?