You are given the following data on several stocks: State of Returns in Each State of Economy the Economy Probability Gere Mining Reubenfeld Films DeLorean Automotive Boom 25% 40% 24% 20% Expansion...

You are given the following data on several stocks: State of Returns in Each State of Economy the Economy Probability Gere Mining Reubenfeld Films DeLorean Automotive Boom 25% 40% 24% 20% Expansion 50% 12% 10% 12% Recession 25% 20% 12% 40% a. Calculate the expected return and standard deviation for each stock. b. Calculate the expected return and standard deviation for a portfolio invested equally in Gere Mining and Reubenfeld Films. How does the standard deviation of this portfolio compare to a simple 50-50 weighted average of the standard deviations of the two stocks? c. Calculate the expected return and standard deviation for a portfolio invested equally in Gere Mining and DeLorean Automotive. How does the standard deviation of this portfolio compare to a simple 50-50 weighted average of the standard deviations of the two stocks? d. Explain why your answers regarding the portfolio standard deviations are so different in parts (b) and (c).