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Use the following information State of the Economy Probability Stock P Stock Q Boom .7 32% 18% Recession .3 -14% -5% A. What is the

Use the following information

State of the Economy	Probability	Stock P	Stock Q
Boom	.7	32%	18%
Recession	.3	-14%	-5%

A. What is the expected return of the Stock P?

B. What is the expected return of Stock Q?

C. What is the expected return of a portfolio 60 percent invested in Stock P and the remainder in Stock Q?

D. What is the standard deviation of a portfolio 60 percent invested in Stock P and the remainder in Stock Q?

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