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Please answer both question 16 and 17 ASAP!! Question 16 There is a 36.12% probability of a below-average economy and a 63.88% probability of an
Please answer both question 16 and 17 ASAP!!
Question 16 There is a 36.12% probability of a below-average economy and a 63.88% probability of an average economy. If there is a belowaverage economy, Stocks A and B will have returns of 4.76% and 7.10%, respectively. If there is an average economy, Stocks A and B will have returns of 12.41% and 19.40%, respectively. Compute the following for Stocks A and B (Please write all answers as percentages (e.g. 1234 should be written as 12.34): A. Stock A Expected Return: B. Stock B Expected Return: C. Stock A Standard Deviation: % D. Stock B Standard Deviation: % Question 17 2 pts There is a 16.65% probability of an average economy and a 83.35% probability of an above average economy. You invest 22.25% of your money in Stock S and 77.75% of your money in Stock T. In an average economy the expected returns for Stock S and Stock T are 14.52% and 12.79%, respectively. In an above average economy the the expected returns for Stock S and T are 13.88% and 15.18%, respectively. What is the expected return for this two stock portfolio? (2.0 points) Please write your answer as percentage (e.g. 1234 should be written as 12.34): - Expected Return: %
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