What is the expected return on a portfolio comprised of $6,400 of stock M and $4,300 of stock N if the economy enjoys a boom period? Probability of State Return if State Occurs State Stock M Stock N Boom 22% 24% 7% Normal 64% 15% 13% Recession 14% -29% 16% % Expected Portfolio Return in a boom = What is the standard deviation of the returns on a $44,000 portfolio which consists of stocks C and D? Stock C is valued at $24,000. State of Economy Return if State Probability Occurs Stock C Stock D Boom 30% 19% 10% Normal 50% 5% 8% Recession 20% 0% 5% Standard Deviation %