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1. Expected Return, Variance and standard Deviation Consider the following information on returns and probabilities: State...

1. Expected Return, Variance and standard Deviation

Consider the following information on returns and probabilities:

State Probability X Y

Boom. .25 15%. 10%

Normal .60 10%. 9%

Recession .15 5% 10%

  • What are the expected return and standard deviation for Stock X and Stock Y?

  • What are the expected return and standard deviation for a portfolio with an

    investment of $6,000 in asset X and $4,000 in asset Y?

  • Show work please

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