You are trying to form portfolios based on the following information:

State	Probability	Return A	Return B
Poor	20.0%	-4.0%	-4.0%
Normal	40.0%	3.0%	8.0%
Good	30.0%	10.0%	8.0%
Very Good	10.0%	30.0%	10.0%

You also know the risk-free rate is 5%.

Use the following information for questions 6 to 9. Suppose we construct a portfolio with 20% of Stock A and 80% Stock B.

Question 6: Calculate the Expected Return of the Portfolio

Question 7: Calculate the Standard Deviation of the Portfolio

Question 8: Calculate the Sharpe Ratio of the Portfolio

Question 9: Which portfolio would we select; one with 20% in Stock A and 80% in Stock B or a portfolio with 30% in Stock A and 70% in Stock B?

Question 10: Calculate the Minimum Variance Portfolio