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1 . Consider the following information State of Economy Probability of State of Economy Rate of Return if State Occurs Stock S Stock T Boom
Consider the following information
State of
Economy Probability of
State of Economy Rate of Return
if State Occurs
Stock S Stock T
Boom
Normal
i What is the expected return for stock S For Stock T
ii What is the standard deviation for Stock S For stock T
iii What is the coefficient of variation for Stock S For stock T
iv If you invest of your money in stock S and in stock T what is the expected return of the portfolio
v Find the return of your portfolio when a economy is booming and b economy is normal.
vi What is the standard deviation for your portfolio?
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