The next table presents the joint distribution of the return on three risky assets Z1, Z2 and Z3.

Calculate (directly) the expected return and the standard deviation of the return on a portfolio P that allocates 0.1 to Z1, 0.6 to Z2 and 0.3 to Z3; i.e., P=(0.1, 0.6, 0.3) (In computational problems, show the basic equation(s) you used to solve the problem. In verbal problems, briefly explain your choice and why you dismissed the other answers. )

Probability	RZ1	RZ2	RZ3
0.5	18%	15%	4%
0.2	10%	-9%	3%
0.1	-16%	10%	2%
0.2	-20%	-12%	-4%

1. The expected return on portfolio P is 3.72% and the standard deviation is 8.96%
2. The expected return on portfolio P is 3.72% and the standard deviation is 9.21%
3. The expected return on portfolio P is 4.12% and the standard deviation is 9.21%
4. The expected return on portfolio P is 4.12% and the standard deviation is 8.96%
5. None of the above