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Managing Portfolio Topic - Variance and Standard Deviation for individual investment (single asset) There are 2 assets and 3 states of the economy State Of

Managing Portfolio

Topic - Variance and Standard Deviation for individual investment (single asset)

There are 2 assets and 3 states of the economy

State Of Economy Probability of State of Economy Expected return on Stock A if state occurs Expected return on Stock B if state occurs
Recession 0.1 -0.20 0.30
Normal 0.6 0.10 0.20
Boom 0.3 0.70 0.50

What are the expected returns and standard deviations for these 2 stocks?

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