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Use the following information to answer Questions 43 and 44. State of Economy Probability of State of Economy Return on Stock A Return on Stock

Use the following information to answer Questions 43 and 44. State of Economy Probability of State of Economy Return on Stock A Return on Stock B Recession 0.15 1% -25% Normal 0.35 9% 15% Boom 0.50 14% 38% Suppose you have $10,000 total. If you put $6,000 in Stock A and the remainder in Stock B, what will be the expected return on your portfolio? a. 16.45% b. 14.38% c. 11.94% d. 18.50% 2 points Save Answer QUESTION 44 What will be the standard deviation on your portfolio? a. 10.45% b. 13.01% c. 11.42% d. 12.36%

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