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Consider the following probability distribution for stock ABC and XYZ: Scenario Probability Return of ABC Return of XYZ 0.3 0.5 0.07 0.11 -0.16 -0.09 0.14

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Consider the following probability distribution for stock ABC and XYZ: Scenario Probability Return of ABC Return of XYZ 0.3 0.5 0.07 0.11 -0.16 -0.09 0.14 0.26 0.2 1. Calculate the expected return of stocks ABC and XYZ. 2. Calculate the variance and standard deviation of stocks ABC and XYZ. 3. Calculate the covariance and correlation of stocks ABC and XYZ. 4. Calculate the expected return and standard deviation for the following portfolios: (a) All in XYZ (b) 20% in ABC and 80% in XYZ. (c) 40% in ABC and 60% in XYZ. (d) 60% in ABC and 40% in XYZ. (e) 80% in ABC and 20% in XYZ. (f) All in ABC

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