the principle of diversification

following information to answer question 18-21. State Boom Normal 0.3 0.6 0.1 Return on A 12% 8% 4% Return on B 2% 2% 6% Bust What is the expected return on asset A? A) 1.2% B) 4.0% C) D) 8.0% 8.8% 9.3% E) What is the standard deviation of return for asset B? A) B) C) D) 9. 1.3% 1.9% 2.5% 2.4% 6.4% E) What is the expected return on a portfolio that is 60% invested in A, and 40% invested in B? A) 2.2% B) 4.4% C) 5.8% D) 8.8% E) 9.9% 20. What is the standard deviation of a portfolio that is 60% invested in A, and 40% invested in B? A) 0.5% B) 0.9% c) 1.5% D) 2.3% E) 6.4% 21. 22. JLP Industries has 6.5 million shares of common stock outstanding