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iaiRet Return for the entire 2) The following table indicates several rates of return for two different stocks, as based ona total of three potential
iaiRet Return for the entire 2) The following table indicates several rates of return for two different stocks, as based ona total of three potential economic situations. The probability of each economic situation taking place is also included in this table. Return Stock A State of the Economy Heavy Recession Moderate Expansion Heavy Expansion Return Stock B 3% 8% 16% Prob SOE 0.47-24% 17% 0.28 0.25 31% pected Return for Stock A, taking into consideration each of these three states of the economy? (7 points). of the economy? (7 points) these three states of the economy? (9 points). B) W B) What is the Expected Returm for Stock B, taking into considerati for Stock B, taking into consideration each of these three states C) What is the Variance and Standard Deviation for Stock A, taking into D) What is the Variance an Deviation for Stock B, taking into consideration each of d Standard these three states of the economy? (9 points). E) What is the Expected Return for the entire portfolio, weighted for the appropriate impact of iaiRet Return for the entire 2) The following table indicates several rates of return for two different stocks, as based ona total of three potential economic situations. The probability of each economic situation taking place is also included in this table. Return Stock A State of the Economy Heavy Recession Moderate Expansion Heavy Expansion Return Stock B 3% 8% 16% Prob SOE 0.47-24% 17% 0.28 0.25 31% pected Return for Stock A, taking into consideration each of these three states of the economy? (7 points). of the economy? (7 points) these three states of the economy? (9 points). B) W B) What is the Expected Returm for Stock B, taking into considerati for Stock B, taking into consideration each of these three states C) What is the Variance and Standard Deviation for Stock A, taking into D) What is the Variance an Deviation for Stock B, taking into consideration each of d Standard these three states of the economy? (9 points). E) What is the Expected Return for the entire portfolio, weighted for the appropriate impact of
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