Problem 2 (25 points) a. You own the following portfolio of stocks. What is the portfolio weight of stock D? (10 points) Number Price 200x224,400 Stock of Shares per Share 200 $22 800 x 17=13,600 800 $17 500 $46 500 X 46 = 23,000 300 $38 300x38 = 11,400222% 52400 Total = 52,400=108% b. What is the portfolio standard deviation if 25% is invested in stock S and 75% is invested in stock T? (15 points) 11,400 - 122 or (22%) Probability of State of Economy State of Economy Boom Normal Bust 20% Returns if State Occurs Stock S Stock T 12% 20% 6% 4% 2% -10% 70% 10%