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An investor is considering the purchase of Gryphon stock, which has returns given in the table below. Rate of Return Scenario Recession Normal Economy Boom

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An investor is considering the purchase of Gryphon stock, which has returns given in the table below. Rate of Return Scenario Recession Normal Economy Boom Probability 0.15 0.43 0.42 14% Calculate the expected return and standard deviation of Gryphon. Round your answers to 2 decimal places. Enter your answers below. Er) = 8.29 Correct response: 8.29% Sid. Dev. = 6.00 Correct resp se: 6.910.01% The investor decides to diversify by investing $10,000 in Gryphon stock and $3,000 in Rayal stack, which has an expected return of 5.5% and a standard deviation of 5.3%. The correlation coefficient for the two stocks' returns is 0.9. Calculate the expected return and standard deviation of the portfolio Round your answers to 2 decimal places Enter your answers below. E) 7.65 Correct response: 7.6510.01% Sid. Dev - 5.81 Correct response: 5.8140.62% Suppose the investor decides to invest an additional $1,000 in a treasury bill yielding 1.5%. What will be the expected return and standard deviation of this portfolio Round your answers to 2 decimal places. E) Number % Sid. DevNumber

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