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1 . Find the expected return and standard deviation of each stock: Probability Return of Stock C Return of Stock D 0 . 3 0

1. Find the expected return and standard deviation of each stock:
Probability Return of Stock C Return of Stock D
0.3010%25%
0.5015%10%
0.2040%0%
2. Calculate the expected return and standard deivation of a portfolio made up of 50% stock C and 50% stock D if the correclation is -0.75.
3. Would you prefer to put your money in stock C, stock D or the 50/50 portfolio? Explain.

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