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Expected return and standard deviation. Use the following information to answer the questions.   State of   Economy...

Expected return and standard deviation.

Use the following information to answer the questions.

  State of

  Economy

Probability

of State

Return on Asset J in

State

Return on Asset K in

State

Return on Asset L in

State

  Boom

0.24

0.055

0.210

0.290

  Growth

0.38

0.055

0.130

0.190

  Stagnant

0.22

0.055

0.030

0.070

  Recession

0.16

0.055

−0.090

−0.220

a.  What is the expected return of each​ asset?

b.  What is the variance and the standard deviation of each​ asset?

c.  What is the expected return of a portfolio with 10​% in asset​ J, 45​% in asset​ K, and 45​% in asset​ L?

d.  What is the​ portfolio's variance and standard deviation using the same asset weights from part C

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