ASSIGNMENT #6 FIN 3200 1. Based on the following data; calculate the average return and the standard deviation of returns for Stock X. YEAR Stock X Rate of Return 200x -5% 200Y 2002 30% 15% 2. Based on the following data; (a) calculate the expected return and the standard deviation of returns for each stock. State of the Economy Probability Stock A Rate of Return Stock B Rate of Return Recession 0.25 6% Normal Growth -20% 0.45 Boom 13% 0.3 11% 33% 7% (b) Calculate the expected return and the standard deviation on the portfolio, where the portfolio is formed by Investing 60% of the funds in Stock A and the rest in Stock B