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Question 4 Jim Roger is considering a small portfolio of two stocks and has provided you with the following information: (10 marks) Condition Boom Normal

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Question 4 Jim Roger is considering a small portfolio of two stocks and has provided you with the following information: (10 marks) Condition Boom Normal Probability 0.15 0.75 0.10 Company A 21% 12% 3% Company B 10% 7% Recession 1896 Required: What are the expected return and standard deviation for the portfolio with an investment of $10,000 (Company A) and $10,000 (Company B)

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