Refer to the attachment, which provides expected returns for 2 assets- "A" & "B" for 3 different states of nature: Boom, Normal, & Recession. Each state is considered to be equally probable.

For each of the following calculations, express your answer in percentage terms, rounded to 2 decimal places (ie 22.00).

What is the expected return for Asset A, E(R_A)? %

What is the expected standard deviation in returns for Asset B? %

Suppose that a portfolio is created with a 25% invested in Asset A and 75% invested in Asset B.

What is the expected return for the portfolio, E(R_P)? %

What is the expected standard deviation in returns for the portfolio? %

Boom Normal Recession LA 1/3 1 25% 1/3 15% 1/ 3 1 -5% 1% 5% 12% Boom Normal Recession LA 1/3 1 25% 1/3 15% 1/ 3 1 -5% 1% 5% 12%