- Internacional (es) A portfolio is invested 30 percent in both Stocks A and C, and 40 percent in Stock B. The risk free rate is 2.5%. The following table contains the return and probabilities for the states of the economy. Rate of Return if State Occurs: State of Stock A Stock B Stock C Economy Probability of State Occurring 0.08 (%) (%) N%) Boom 15.6 13.2 12.9 Normal 0.87 11.2 9.6 8 00 Recession 0.05 2.5 1.2 -5.6 2.6598 22.9800 What is the standard deviation of the portfolio? What is the expected return of the portfolio? 9.2603 9.4359 2.6598 9.4359