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Individual State 1 Return (p=0.3) State 2 Return (p=0.5) State 3 Return (p=0.2) A 5% 11% 9% B 6% 8% -3% Given the above information

Individual State 1 Return (p=0.3) State 2 Return (p=0.5) State 3 Return (p=0.2)
A 5% 11% 9%
B 6% 8% -3%

Given the above information on two investments A and B, calculate the following statistics:

1. Calculate the Expected Return for A. Give your answer in decimal form to 3 decimals places. For example, 9% is 0.09.

2. Calculate the standard deviation for A. Give your answer in decimal form to 3 decimals places. For example, 9% is 0.09.

3. Calculate the Expected Return for B. Give your answer in decimal form to 3 decimals places. For example, 9% is 0.09.

4. Calculate the standard deviation for B. Give your answer in decimal form to 3 decimals places. For example, 9% is 0.09.

5. Assume that the expected return for A is 10% and the expected return for B is 5.5%. Calculate the expected return on a portfolio consisting of 60% A and 40% B. Give your answer in decimal form to 3 decimals places. For example, 9% is 0.09.

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