State of Economy	Probability of State of Economy	Asset A Rate of Return	Asset B Rate of Return
Boom	0.1	0.25	0.08
Normal	0.4	0.15	0.03
Recession	0.5	-0.08	-0.01

Question 3 (1 point)

What is the standard deviation for asset A?

Question 3 options:

Question 4 (1 point)

What is the standard deviation for asset B?

Question 4 options:

Question 5 (1 point)

What is the expected return of a portfolio that has 80% in Asset A and 20% in Asset B?

Question 5 options:

Question 6 (1 point)

The standard deviation of the 80% A and 20% B portfolio most likely should

Question 6 options:

A)	Equal 80% X A's standard deviation plus 20% x B's standard deviation.

B)	Be greater than 80% X A's standard deviation plus 20% x B's standard deviation.

C)	Be less than 80% X A's standard deviation plus 20% x B's standard deviation.