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Assume you invest in both (portfolio), what is the standard deviation and coefficient of variation? Is the porfolio a better option than investing in each
Assume you invest in both (portfolio), what is the standard deviation and coefficient of variation? Is the porfolio a better option than investing in each stock individually?
e.) Assume you invest in both stocks (portfolio), what is the standard deviation and coefficient of variation? Is the portfolio a better option than investing in each stock individually? (4 Points) Expected Returns and Deviations (15 Points) Probability Return Stock A Return Stock B State of the Economy Recession Normal Expansion 0.3 0.5 0.2 -1.5% 7.5% 18.0% -12.0% 15.5% 29.0% a.) What is the expected return for each stock A and stock B7 (2 points) b.) If an investor has $10,000 and invests 30% in Stock A and 70% in Stock B what is the expected total dollar retur? (2 points) Stock Prices Year Stock A Stock B 2015 $72.42 $83.93 2016 $69.56 $66.34 2017 $63.75 $70.93 2018 $72.95 $90.01 2019 $71.17 $98.99 2020 $110.74 $107.68 Step by Step Solution
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