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

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Finance

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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