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The returns of 3 securities (stock A, stock b, and a corporate bond) are listed below. State Probability stock A stock B Corp bond Boom

The returns of 3 securities (stock A, stock b, and a corporate bond) are listed below.

State Probability stock A stock B Corp bond
Boom 30% 12% 4% 9%
Normal 40% 5% 2% 8%
Bust 30% 2% -10% 6%

Question 13 options:

(Estimated time allowance: 25 minutes). The returns of 3 securities (stock A, stock b, and a corporate bond) are listed below.

State Probability stock A stock B Corp bond
Boom 30% 12% 4% 9%
Normal 40% 5% 2% 8%
Bust 30% 2% -10% 6%

You MUST use 4 digits in every calculation you do in order for your answer to be the same as the one in the system. When entering your answer, round to the nearest 0.01% but do not use or enter the sign %

What is the expected return of a portfolio that is 30% in stock A, 60% in stock B and the rest in the corporate bond?

What is the standard deviation of the portfolio that is 30% in stock A, 60% in stock B and the rest in the corporate bond?

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