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a) Calculate the portfolios expected return and standard deviation if you invest 30% in Stock A, 30% in Stock B, 30% in Stock C and

a) Calculate the portfolios expected return and standard deviation if you invest 30% in Stock A, 30% in Stock B, 30% in Stock C and 10% in Stock D.
b) In order to achieve a portfolio with zero standard deviation, calculate the amount of investment weights on Stock A and Stock B.
c) Draw a graph and show the returns and standard deviations of each stock on X and Y axises. Also, show your portfolio's return and standard deviation values on the same graph and discuss your portfolio's performance among other stocks.
Market Condition Probability of Occurrence Return on Return on Return on Return on
Stock A Stock B Stock C Stock D
Growth 30% -10% 80% 120% 20%
Normal 40% 45% 50% 0% 20%
Recession 30% 85% 20% -30% 20%
Expected Return
Variance
Standard Deviation
Return per Unit Risk

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