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corporate finance ehrhardt 3. The Stock M and Stock I have the following probability distributions: (20 points) Probability im 15% 9% 18% rj 20% 5%

corporate finance ehrhardt
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3. The Stock M and Stock I have the following probability distributions: (20 points) Probability im 15% 9% 18% rj 20% 5% 12% 0.3 (a) Calculate the expected rates of returns for Stock M and stock J (3 points) (b) Calculate the standard deviations for Stock M and stock J (5 points) (c) Calculate the coefficients of variations for Stock M and stock J (3 points) (d) Compute the coefficient of correlation between Stock M and the stock ) (3 points) (e)Construct a portfolio of M and J with 50% invested in M. Calculate the expected return and variance of the portfolio. (6 points)

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