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DETIALED STEPS PLEASE 1. (25 points) The stocks of Apple and Amazon are expected to have the following returns (%) depending on the state of

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DETIALED STEPS PLEASE

1. (25 points) The stocks of Apple and Amazon are expected to have the following returns (\%) depending on the state of the economy next year: (a) What are the expected returns of Apple and respectively Amazon for next year? (b) Which of the two stocks is riskier? (c) What is the expected return of a portfolio that is 80% invested in Apple and 20% invested in Amazon? (d) What is the risk of the portfolio that is 80% invested in Apple and 20% invested in Amazon? (e) Rank the three possible investments (100\% invested in either company or the portfolio) in the order of your preference. Justify

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