Answer A-D Please

[25 points] Stocks X and Y have the following probability distributions of expected returns for four possible economic states. Economy Stock Stock Probability State 0.1 -8% 5% 0.4 -10% 0.4 9% -2% 0.1 14% -10% 8% Suppose you construct a two-stock portfolio that has $3 million invested in Stock X and $1 million invested in Stock Y. The beta of Stock X is 20% higher than the beta of overall stock market. Stock Y's beta is -0.8. [Show the work leading to your answers] a. Calculate the expected returns for Stock X and Stock Y. b. Calculate the standard deviations of returns for Stock X and Stock Y. C. Calculate the coefficients of variation (CVS) for Stock X and Stock Y. Which stock appears riskier to you? d. Calculate the two-stock portfolio's expected return. e. Calculate the two-stock portfolio's standard deviation. f. Calculate the two-stock portfolio's beta. g. If the overall market return is 8% and the risk-free rate is 1%, what is the two-stock portfolio's required return? h. How can you reallocate the $4 million in Stock X and Stock Y, so that the beta of the resulting portfolio will be zero