Based on the following information regarding Stock Uno, Stock Dos and Stock Tres,
Economic State Probability of State of Nature Returns - Uno Returns - Dos Returns - Tres
Boom 33.33% -1.0% 24.0% 4.0%
Good 33.33% 4.0% 11.0% 4.0%
Poor 33.33% 12.0% 3.0% 4.0%
1Calculate the expected return and standard deviation for the three-asset portfolio assuming the portfolio consists of the following weights:
a) 1/3 of Uno, 1/3 of Dos, and 1/3 Tres (meaning equal amounts of each stock in the portfolio).
b) 50% Uno, 40% Dos and 10% Tres
c) 0% Uno, 0% Dos, 100% Tres