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Consider the following two stocks. Probabilities ( pi pi ) Stock A Stock B Recession p1= p1= 29% -7% 4% Normal p2= p2= 37% 9%

Consider the following two stocks.

Probabilities (pipi ) Stock "A" Stock "B"
Recession p1=p1= 29% -7% 4%
Normal p2=p2= 37% 9% -12%
Boom p3=p3= 34% 16% 25%

The portfolio weights for stocks "A" and "B" are 0.3 and 0.7, respectively.

a. What are the expected returns of stock "A" and "B"? Enter your answers as a percentage. Do not put the percent sign in your answers. Round your answers to 2 DECIMAL PLACES.

E(ra)=Era= 6.740.01

E(rb)=Erb= 5.220.01

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This questions has 4 parts (i.e., you will be clicking "Verify" 4 times)

b. What are the standard deviations of stocks "A" and "B"? Enter your answers as a percentage. Do not put the percent sign in your answers. Round your answers to 2 DECIMAL PLACES.

SDa=SDa= 9.260.01

SDb=SDb= 15.590.01

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c. What is the expected return of the portfolio? Enter your answer as a percentage. Do not put the percent sign in your answer. Round your answer to 2 DECIMAL PLACES.

E(rp)=Erp= 5.680.01

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d. Using the correct answer from the previous question, what is the standard deviation of the portfolio? Enter your answer as a percentage. Do not put the percentage sign in your answer. Round your answer to 2 DECIMAL PLACES.

SDp=SDp=

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pls solve the problem d

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