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 10% in asset J, 55% in asset K, and 35% in asset L?

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	0.29	0.06	0.23	0.3
Growth	0.39	0.06	0.14	0.22
Stagnant	0.23	0.06	0.04	0.065
Recession	0.09	0.06	-0.14	-0.21

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

(c)?