Use the following information to answer the questions: .

a.What is the expected return of each asset?

b.What is the variance and the standard deviation of each asset?

c.What is the expected return of a portfolio with 12% in asset J,

50%

in asset K, and

38%

in asset L?d.What is the portfolio's variance and standard deviation using the same asset weights from part

(c)?

Hint: Make sure to round all intermediate calculations to at least seven (7) decimal places. The input instructions, phrases in parenthesis after each answer box, only apply for the answers you will type.

a. What is the expected return of asset J?

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Data table

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State of Economy		Probability of State		Return on Asset J in State		Return on Asset K in State		Return on Asset L in State
Boom		0.26		0.055		0.190		0.260
Growth		0.35		0.055		0.110		0.180
Stagnant		0.21		0.055		0.030		0.060
Recession		0.18		0.055		0.060		0.220