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An investor is considering two stocks, stock A and stock B, taking into account the potential performance of these stocks under 3 future market conditions:

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An investor is considering two stocks, stock A and stock B, taking into account the potential performance of these stocks under 3 future market conditions: recession, growth, and boom. Using the data in the table above, calculate: a) The expected return and standard deviation for stock A b) The expected return and standard deviation for stock B c) The portfolio expected return and standard deviation, if an investor invests 20% of his/her funds in Stock A, and 80% in stock B. The correlation coefficient between the stocks is =1

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