Reference no: EM132819638

Question - The returns of United Railroad Inc. (URI) are listed below, along with the returns on Major Application of Technology (MAT). Economy 1 (with probability .15) gives a return of -14% for URI and -9% for MAT. Economy 2 (with probability .25) gives a return of 16% for URI and 11% for MAT. Economy 3 (with probability .30) gives a return of 22% for URI and 15% for MAT. Economy 4 (with probability .20) gives a return of 7% for URI and 5% for MAT. Economy 5 (with probability .10) gives are return of -2% for URI and -1% for MAT. What is the expected return and standard deviation on a portfolio that is 50% URI and 50% MAT?