2.

Rate of Return Probability 0.25 3% Scenario Recession Normal Boom 0.47 11% 0.28 14% Calculate the expected return and standard deviation of Gryphon. Round your answers to 2 decimal places. Enter your answers below. E() = 8.34 :8.34% This question has 4 parts (i.e., you will be clicking "Verify" 4 times) Std. Dev. = 6.67 :6.6740.01% : The investor decides to diversify by investing $6,000 in Gryphon stock and $7,000 in Royal stock which has an expected return of 11.5% and a standard deviation of 9%. The correlation coefficient for the two stocks' returns is 0.6. Calculate the expected return and standard deviation of the portfolio. Round your answers to 2 decimal places. Use the correct answers from the previous question. Enter your answers below. E(rp) = % Consider the following two stocks. Stock "a" Stock "b" 19% 5% Recession Normal Boom Probabilities (P; ) P1 = 24% P2 = 32% P3 -15% 16% 10% = 44% 121% What is the expected return of each stock? Enter your answers as a percentage rounded to 2 decimal places. Do not enter the percentage sign in your answer. Ta = 3 Click "Verify" to proceed to the next part of the question. This question has 4 parts (i.e., you will be clicking "Verify" 4 times)