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1) What are the expected return and the standard deviation for Tiffin Co. stock? Tiffin Co. Scenario Poor Case Most Likely Good Case Probability of
1) What are the expected return and the standard deviation for Tiffin Co. stock? Tiffin Co. Scenario Poor Case Most Likely Good Case Probability of Scenario 0.25 0.50 0.25 Rate of Return 2% 3% 4% 2) Assume that you are holding the following portfolio: Amount Invested Stock X $40,000 Beta = 1.0 Stock Y $25,000 Beta = 1.5 Stock Z $35,000 Beta = 2.0 If the risk-free rate of return is 2% and the market risk premium is 7%, what is the required return on the portfolio
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