Intro

The table below shows the expected rates of return for three stocks and their weights in some portfolio:

		Stock A	Stock B	Stock C
	Portfolio weights	0.3	0.2	0.5
State	Probability		Expected returns
Recession	0.2	0.09	0.03	0.14
Boom	0.8	0.14	0.05	0.15

What is the portfolio return during a recession?

(Only part 2 & part 3 need answers)

Part 2

What is the expected portfolio return? (3+ decimals)

Part 3

What is the standard deviation of the portfolio returns? (4+ decimals)