A portfolio consists of 50% invested in Stock X and 50% invested in Stock Y. We expect two probable states to occur in the future: boom or normal. The probability of each state and the return of each stock in each state are presented in the table below.   State Probability of state Return on Stock X Return on Stock Y Boom 20% 25% 35% Normal 80% 10% 5% What are the expected portfolio return and standard deviation? Select one: a. 12% and 8.1% b. 12% and 9% c. 14.25% and 10.31% d. 14.25% and 9% e. 18.75% and 12.12%

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