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Korn, Inc. and Bunyon, Inc. are two foot care firms whose stock returns depend on the following four states of the economy, which are equally
Korn, Inc. and Bunyon, Inc. are two foot care firms whose stock returns depend on the following four states of the economy, which are equally likely to happen: (answer parts a, b, and c - use four decimal places for all intermediate steps) Korn -10 +2 Bunyon +25 +5 Recession Slow Go Normal Boom +6 +3 +25 -15 a.) Calculate the expected return on each stock. b.) Calculate the variance and standard deviation of each stock. c.) Calculate the expected return, variance and standard deviation of a portfolio consisting of 55% Korn and 45% Bunyon
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