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An investor is considering the purchase of Gryphon stock, which has retums given in the table below. Probability 0.21 Scenario Recession Normal Economy Boom Rate
An investor is considering the purchase of Gryphon stock, which has retums given in the table below. Probability 0.21 Scenario Recession Normal Economy Boom Rate of Return -598 11% 18% 0.55 0.24 Calculate the expected return and standard deviation of Gryphon. Round your answers to 2 decimal places Enter your answers below. E(t) = 9.32 o Correct response: 9.32% Std. Dey - 8.022 o Correct response: 7.92+0.01% The investor decides to diversity by investing $4,000 in Gryphon stock and $6,000 in Royal stock, which has an expected return of 10% and a standard deviation of 7.1%. 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. The investor decides to diversity by investing $4,000 in Gryphon stock and $6,000 in Royal stock, which has an expected return of 10% and a standard deviation of 7.1%. 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 Enter your answers below Erp) = Number Sid. Dev. = Number Section Attempt 1 of 1 Verify
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