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Your portfolio is invested 40 percent in A and 60 percent in B. Given the information on Stocks A and B, compute the following: Probability

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Your portfolio is invested 40 percent in A and 60 percent in B. Given the information on Stocks A and B, compute the following: Probability of Rate of Return if State Occurs State of Economy State of Economy Stock A Stock B Recession 0.2 0.1 -0.1 Normal 0.5 0.3 0.1 Boom 0.3 0.4 0.2 a) (2pts) The expected return for each stock b) (2pts) The standard deviation of the return for each stock c) (3pts) The correlation coefficient between the returns for stock A and stock B d) (3pts) The standard deviation of the return on the portfolio

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