Use the following information to answer the next 2 questions.

State	Probability	Return on A	Return on B
Boom	0.65	0.30	0.05
Bust	0.35	0.10	0.20

1) What is the expected return on a portfolio that equally-weighted amongst A, B, and the risk-free asset? The risk free rate is 5%.

a. 0.1000

b. 0.1275

c. 0.1473

d. 0.1556

e. 0.1672

2) What is the standard deviation of a portfolio that equally-weighted amongst A, B, and the risk-free asset? The risk free rate is 5%.

a. 0.002

b. 0.004

c. 0.006

d. 0.008

e. 0.010