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please answer asap b. There are two assets and three states of the economy: State of Economy Probability of State of Economy Rate of Return
please answer asap
b. There are two assets and three states of the economy: State of Economy Probability of State of Economy Rate of Return Stock A Stock B Recession Normal Boom 0.35 0.35 0.30 -0.18 0.25 0.5 0.25 0.35 0.40 I. What are the expected returns and standard deviations for these two stocks? II. Suppose you have $60,000 total. If you put $20,000 in Stock A and the remainder in Stock B, what will be the expected return and standard deviation of your portfolio? c. You own a portfolio equally invested in a riskfree asset and two stocks. If one of the stocks has a beta of 1.50 and the total portfolio is equally as risky as the market, what must the beta be for the other stock in your portfolioStep by Step Solution
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