State of Economy Example Boom Bust Probability of State of Economy .75 .25 Rate of Return If State Occurs Stock A .08 .11 Stock B .17 -.05 Stock C .24 -.08 What is the expected return and standard deviation of a portfolio with 20 percent invested in A, 20 percent in B and 60 percent in C? PLEASE SHOW WORK

Example - What is the expected return and standard deviation of a portfolio with 20 percent invested in A, 20 percent in B and 60 percent in C