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4. Consider the following cases and attempt the requirement: (ILOs: A1/B1/01) (7 Points; as indicated) a. information and estimate the expected rate of return of
4. Consider the following cases and attempt the requirement: (ILOs: A1/B1/01) (7 Points; as indicated) a. information and estimate the expected rate of return of the portfolio) (2 Points) Probability of Portfolio Return State of Economy State of Economy State Occurs Recession -10 -15 Normal .09 Boom 30 23 .60 EX{R-) b. You own a portfolio that has $3,480 invested in Stock A and $7.430 invested in Stock B. If the expected returns on these stocks are 8 percent and 11 percent, respectively, what is the expected return on the portfolio? |(2 points) (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places). EXR c. You have $10,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 12.1 percent and Stock y with an expected return of 9.8 percent. If your goal is to create a portfolio with an expected return of 10.85 percent, how much money will you invest in Stock X and Stock Y? (3 Points) (Do not round intermediate calculations and round your answers to 2 decimal places)
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