State Probability Return on A Return on B

Boom .6 0.15 0.08

Bust .4 0.05 0.20

Using the table above,

A) what is the expected return for Stock A?

B) What is the standard deviation for Stock A (Note: Use 7 decimal places to calculate the variance.)?

C) What is the expected return on the portfolio if you invest $7,000 in Stock A and $3,000 in Stock B?

D) What is the standard deviation of the portfolio if you invest $7,000 in Stock A and $3,000 in Stock B (Note: Use 7 decimal places to calculate the variance.)?

Please show your work