Given the following data for Product A and Product B

Condition of Probability Rate of Return if the event occurs the Economy of the Events Product A Product B

Strong 35% 20% 25%

Moderate 25% 15% 20%

Weak 40% 5% 10%

The amount of investment will be on a 45:55 ratio.

Questions (Note: Your answers must have two decimal places):

a) Compute for the expected return for Product A and Product B for the three events (condition of the economy).

Strong - Answer%

Moderate - Answer%

Weak - Answer%

b) Compute for the expected return on portfolio. Answer%

c) Compute for the portfolio standard deviation. Answer%