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1) the expected return and variance ( ) of the returns of stack (x) are : 10%) and 14. We also have following information about
1) the expected return and variance ( ) of the returns of stack (x) are : 10%) and 14. We also have following information about stock cy): Market Condition probability | Return Bear Market 1/10 Normal Market 1/40 Bull Market 3 1 1700 a) what is the expected return and standard deviation (Risk of Stack (6Y) ? b) Sam; wants to manage a portfolio including Stock ux) and (Y). he invests 50$ on stock 4X)) and 50$ on Stock (KYS). calculate the expected return and Risk (standard deviation) of Sam's portfolio. (correlation between returns of Stock (X) and cryn is zero). 2: David decides to invest in a risky a portfolio and Tobills with rate of 24 . the expected return and standard deviation of the risky portfolio is: 16 and 18. Assume that that the standerd deviation of Darid's complete portfolio is: 12 What is the expected return of David's complete portfolio? b) Calculate the sharp ratio for and Draw the CAL. the risky portfolio
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