State	Probability	Bond	Stock
Booming	20%	10%	25%
Normal	50%	7%	10%
Slowdown	10%	3%	2%
Recession	20%	-2%	-10%

1. Calculate the expected return, standard deviation for stock and bond, calculate the covariance between the two.
2. Assume that you hold 50% of bond and 50% of stock, calculate the expected return and standard deviation of your portfolio

	Bond	Stock	Portfolio
Expected Return
Standard Deviation
Covariance			N/A