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Following are the probability distribution of returns of portfolio of Stock A and Stock B in equal proportion of weight in each state of economy.
Following are the probability distribution of returns of portfolio of Stock A and Stock B in equal proportion of weight in each state of economy. You are required to calculate Expected Return and Risk for individual Stocks?
\begin{tabular}{c|c|c|c} \hline \hline State of Economy & Probability & Return on Stock A (\%) & Return on Stock B (\%) \\ \hline 1 & 0.2 & 15 & (5) \\ \hline 2 & 0.2 & (5) & 15 \\ \hline 3 & 0.2 & 5 & 25 \\ \hline 4 & 0.2 & 35 & 5 \\ \hline 5 & 0.2 & 25 & 35 \\ \hline \hline \end{tabular}
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