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	0.5	0.2	0.3
State	Probability		Expected returns
Recession	0.1	0.03	0.02	-0.04
Normal	0.5	0.06	0.06	0.03
Boom	0.4	0.11	0.08	0.11

What is the expected portfolio return?

What is the standard deviation of the portfolio returns?