The following information relate to the two: Projects A and B of Augustina’s Co.Ltd. State of the Economy Probability Returns of A (%) Returns of B (%) Boom 0.4 20 9 Normal 0.3 15 12 Recession 0.3 10...

The following information relate to the two: Projects A and B of Augustina’s Co.Ltd.

1.Calculate the expected return and standard deviation of Projects A and B

2.If project A and B are combined in the ratio 6:4 , what is the expected return and standard deviation of the portfolio