Rate of Return if State Occurs
State of	Probability of
													Economy	State of Economy			Stock A			Stock B			Stock C
Boom		0.1			0.34			0.44			0.24
Good		0.6			0.19			0.15			0.08
Poor		0.25			0.01			0.09			0.07
Bust		0.05			0.15			0.19			0.11

a. Your portfolio is invested 25 percent each in A and C, and 50percent in B. What is the expected return of the portfolio?

b. What is the standard deviation of your portfolio return?

c. Now you are taking less risk and invest 25 percent each in A and B, and 50 percent in C.