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Consider the following scenario analysis for Stocks A and B and for the market portfolio (M)

		Rate of Return
State of Economy	Probability of State	Stock A %	Stock B %	Market %

Boom	0.1	30	45	33
Good	0.6	12	10	15
Average	0.2	1	-15	-5
Bust	0.1	-20	-30	-9

a) Calculate the expected rate of return on each stock and the market?

b) Find the standard deviation of returns for each asset?

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Category:- Basic Finance
Reference No.:- M9792674

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