Use this information for questions 38, 39 and 40. In the bad economy, which happens 30% of the time, Stock A goes down by 5% and B goes down by 15%. In the good economy, which happens 70% of the time, Stock A goes up by 15% and B goes up by 20%. What is the expected return on stock A and B, respectively?

		7.5%, 18.5%
		7.5%, 10.5%
		16.5 %, 10.5%
		9.0 %, 9.5%
		None of the above are within 1 percentage point.

Using the information in 38, suppose a portfolio consists of 60% of stock A and 40% of stock B, what is the expected return of this portfolio?

		7.5 %
		13.3%
		11.9%
		9.2%
		15.3%

Again using information in 38, what is the standard deviation of only stock B?

		less than 2.3%
		3.5%
		4.25%
		5.8%
		more than 15%