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1. The following are the monthly rates of return for stock A and stock B during a six-month period. a) Calculate the aqgrage return for

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1. The following are the monthly rates of return for stock A and stock B during a six-month period. a) Calculate the aqgrage return for each stock b) Calculate the variance for each stock c) Calculate the standard deviation for each stock d) Calculate the covariance between the rates of return e) Calculate the correlation coefficient between the rates of return f) If the portfolio consists of 40% stock A and 60% stocks B, calculate the return for this portfolio. g) Calculate the variance for the portfolio. h) Calculate the standard deviation for the portfolio. I) Plot the returns and risks for each stock and portfolio on a return-risk graph. j) Assuming you are a risk-averse investor, would you prefer to hold Stock A, Stock B, or the portfolio? Why

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