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Use the following return distributions for the two funds for the next 4 questions. Business Conditions Probability Return on Stock Fund Return on Bond Fund

Use the following return distributions for the two funds for the next 4 questions.
Business Conditions
Probability
Return on Stock Fund
Return on Bond Fund
Boom
30
35%
-6%
Normal
50
15%
16%
Recession
20
-10%
12%
How much is the expected return on the stock fund?
How much is the standard deviation of the return on the stock fund?
Assume that of your $10,000 portfolio, you invest $9,000 in Stock fund and the rest $1,000 in Bond fund. What is the expected return on your portfolio?
What is the standard deviation of the above portfolio?

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