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Suppose that your portfolio has 35% of Stock A and 65% of Stock B. Economy Probability Stock A States return 1 0.4 32% 2 06

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Suppose that your portfolio has 35% of Stock A and 65% of Stock B. Economy Probability Stock A States return 1 0.4 32% 2 06 Stock B return 5% 11% a) Compute the return of the portfolio in each state: State 1 Portfolio Return: State 2 Portfolio Return: b) Compute the expected return of the portfolio c) Compute the standard deviation of the portfolio

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