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Good Bad Normal probability Stock A 28% 2% 46% -10% 26% -3% 100% Stock B -8% 20% 5% 3) a) Finding the expected return of
Good Bad Normal probability Stock A 28% 2% 46% -10% 26% -3% 100% Stock B -8% 20% 5% 3) a) Finding the expected return of Stock A Finding the standard deviation of stock B if you hold a portfolio with 0.2 million on stock and 0.8 million on stock B. Answer the following questions: what is weight of stock A what is weight of stock B what is portfolio return when the economy is good, bad and normal respectively? what is the expected return of portfolio? what is the variance of the portfolio's expected return
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