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3 (6 points) You have gathered information about the expected returns and standard deviations of two stocks, which is given in the table below s

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3 (6 points) You have gathered information about the expected returns and standard deviations of two stocks, which is given in the table below s Expected Standard deviation return Stock A Stock 160% 100% 200% 40 0% a. Discuss which stock is more attractive and why?(hint think about the assumptions First) You are going to form a porttolio, which includes these two stocks. Total amount invested is $1,000,000 and investment into stock A is $400,000 The rest is invested into stock B. You also know that the covariance between the returns is -o.016 b Show that the correlation between the returns is 0.20. Expiain, what does this result mean? c Calculate the portfolio risk and expected return, and explain the benefits of diversification

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