Please make use of the following information to answer the following questions.
State Probability Return on A Return on B
Boom .65 0.30 0.05
Bust .35 0.10 0.20
What is the expected return for security A?
What is the expected return for security B?
What is the expected return for a portfolio that is 70% invested in A and 30% invested in B?
What is the standard deviation of security A?
What is the standard deviation of security B?
What is the standard deviation of a portfolio with one-quarter of the funds in A and the remainder of the funds in B?