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 8% in asset J, 51% in asset K, and 41% in asset L?

d.What is the portfolio's variance and standard deviation using the same asset weights from part (c)?

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 0.25 0.065 0.220 0.290 Growth 0.39 0.065 0.140 0.200 Stagnant 0.24 0.065 0.025 0.090 Recession 0.12 0.065 -0.130 -0.220