PLEASE ANSWER USING A PAPER AND PENCIL AND NOT EXCEL. THANK YOU!

State of Prob. Of State Rate of Return if State Occurs

Economy of Economy Stock A Stock B

Recession 0.20 -0.15 0.20

Normal 0.50 0.20 0.30

Boom 0.30 0.60 0.40

2. Using the information in the previous problem, suppose you have $20,000 total. If you put $15,000 in Stock A and $5,000 in Stock B, what will be the expected return and standard deviation of your portfolio