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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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