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Question 2 Given the following information, Economy Probability of Economy Stock Stock Stock A B C Recession 0.6 -5% 0% -1% Boom ? 20%

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Question 2 Given the following information, Economy Probability of Economy Stock Stock Stock A B C Recession 0.6 -5% 0% -1% Boom ? 20% 5% 7% 3 pts a) What are the expected returns for stock A, B and C, respectively? List the formula, input numbers and calculate answers b) What is the standard deviation/risk for stock A? List the formula and input numbers, NO calculation needed c) What is the portfolio return given that you have $10,000, allocate $3,000 in stock A and $3,000 in stock B and the rest in stock C? List the formula and input numbers, NO calculation needed. Edit Format Table 12pt Paragraph BIUA22 || I MacBook Pro 0 +

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