Seth II Short answer questions (12 points in total Please show your work. Quantitative questions without work can ONLY get you hall points. 2 points Given the following information, Stock A Recession 0.4 Boom 10.6 a. What are the expected returns for stock A and B, respectively? What is the standard deviation/risk for stock B only? What is the portfolio return given that you have $10,000 and allocate $3,000 in stock A and the rest in stock B2 d. The principle of diversification states that as the number of stocks under the portfolio increases, the portfolio risk more likely A) increases or B) decreases