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correct answers are given along side please show how to calculte thanks You have created a portfolio. You invested 74% of your wealth in stock

correct answers are given along side please show how to calculte thanks
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You have created a portfolio. You invested 74% of your wealth in stock A and remainder of your wealth you invested in stock B. There are two possible states of the world. The bad state has a 25% probability of occurring and the good state has a 75% probability of occurring. Stock A will have a return of - 10.7% in the bad state and Stock A will have a return of 36.0% in the good state. Stock B will have a return of -5.3% in the bad state and Stock B will have a return of 16.0% in the good state. What is the expected return on the portfolio? Your answer should be shown as a percentage and it should be accurate to two decimal places. Answer: 0.21 x (20.78) I You have been asked to determine the effective annual rate of return (realized return) on Stock A over the past 5 years. Stock A had a return of - 15.5% in 2020, a return of 5.5% in 2019, a return of 8.6% in 2018, a return of 17.4% in 2017 and a return of 27.8% in 2016. Based on this information what was Stock A's effective annual rate of return (realized return) over this period? Your answer should be shown as a percentage and it should be accurate to two decimal places. Answer: 40.32 (7.75)

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