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Asset Boom (prob. = 0.4) Normal Economy (prob. = 0.4) Recession (prob. = 0.2) Stock A...

Asset Boom (prob. = 0.4) Normal Economy (prob. = 0.4) Recession (prob. = 0.2)
Stock A 20% 8% -8%
Stock B 8% 4% 2%

You plan to construct your portfolio based on the stock A and B. You decide to invest 60% of your wealth in stock A and 40% of your wealth in stock B. Please calculate the standard deviation of your portfolio according to the probability of each scenario.

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