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An investor is considering the purchase of Gryphon stock, which has returns given in the table below. Scenario Probability Rate of Return 0.15 5% Recession
An investor is considering the purchase of Gryphon stock, which has returns given in the table below. Scenario Probability Rate of Return 0.15 5% Recession Normal Boom 0.47 11% 5.38 17% Calculate the expected retum and standard deviation of Gryphon. Round your answers to 2 decimal places. Enter your answers below E() - 10.88 Correct response: 10.88% Sid. Dev. - 7.22 Correct response: 7.22+0.01% The investor decides to diversity by Investing $5,000 in Gryphon stock and $2,000 in Royal stock which has an expected return of 5% and a standard deviation of 7.4%. The correlation coefficient for the two stocks' returns is 0.1. Calculate the expected return and standard deviation of the portfolio Round your answers to 2 decimal places. Use the correct answers from the previous question Enter your answers below. Elmp) - Number Sid. Dev - Number Section Attemot 1 of 1 Verily
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