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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

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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 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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