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FINANCE QUESTION: RE - POST: PLS SHOW CALCULATION WITH FORMULA ( NOT IN EXCEL ) You have been give this Probability distribution for the expected
FINANCE QUESTION:
REPOST: PLS SHOW CALCULATION WITH FORMULA NOT IN EXCEL
You have been give this Probability distribution for the expected return of Stocks Bonds
Recession
Normal growth
Boom
a Calculate the expected rate of return of stock and bond
b Calculate the standard deviation for each investment?
c Compute the coefficient of variation?
d If an investor allocate of asset to stock and remaining to bond, what would be the investors portfolio returns and standard deviation?
e Is there any diversification benefit achieved?
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