P8-21 (similar to) Question Heli State of Economy Boom Growth Stagnant Recession Probability of State 0.24 0.36 Return on Asset J in State 0.055 0.055 0.055 0.055 Return on Asset Kin State 0.210 0.150 0.050 -0.120 Return on Asset Lin State 0.300 0.180 0.070 - 0.190 0.24 0.16 a. What is the expected return of each asset? b. What is the variance and the standard deviation of each asset? c. What is the expected return of a portfolio with 8% in asset J, 49% in asset K, and 43% in asset L? d. What is the portfolio's variance and standard deviation using the same asset weights from part (c)