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Consider the following table for Stocks A and B Economy Probability of Return Return on A Return on B Good 25% 15% 20% Normal 45%

Consider the following table for Stocks A and B

Economy Probability of Return Return on A Return on B
Good 25% 15% 20%
Normal 45% 10% 8%
Bad 30% 5% -10%

Calculate the following and show calculations/calculator keys

a. Expected return, Standard Deviation, and Coefficient of Variation of Stock A

b. Expected return, Standard Deviation, and Coefficient of Variation of Stock B

c. Which stock is better A or B and why?

d. Expected Return on Portfolio (70% in stock A and 30% in Stock B)

e. Standard Deviation of Portfolio (70% in stock A and 30% in Stock B)

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