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I only need the first problem. Answer the following questions based on the following information about the returns of stock A and stock B. State
I only need the first problem.
Answer the following questions based on the following information about the returns of stock A and stock B. State RA 1 Probability 0.5 0.5 20% 10% RB 5% 15% 2 1. The Expected return of Stock A is? a. 10% b. 9% c. 6% d. 12% e. 15% 2. The Expected return of Stock B is? a. 10% b. 9% c. 6% d. 12% e. 15% 3. The standard deviation of the returns of stock B is: a. 6% b. 4% c. 3.2% d. 5% e. 1.5% 4. The standard deviation of the returns of stock B is: a. 6% b. 4% c. 3.2% d. 5% e. 1.5% 5. Assuming an investment of 60% in stock A and 40% in stock B, the expected return of the portfolio is: a. 12.25% b. 8.5% c. 9.5% d. 13.0% e. 8.25%Step by Step Solution
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