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Please Show your work !!! (Do not use Excel to calculate) Thank you! Part II: Quantitative Analysis I[Queatien (20 marks] 1. Details of two stocks

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Please Show your work!!! (Do not use Excel to calculate) Thank you!

image text in transcribed
Part II: Quantitative Analysis I[Queatien (20 marks] 1. Details of two \"stocks\" are reoapped below, for three possible future eoonoinie states. State of Hip Store's Big th's Enenemy Pruh. 55E Return 55E Return 1 55% 23% 2% 2 12% 0% 5% 3 25% -22% 22% Suppuse that yuu have a wealth L'If MIME, and that yuu plan tu invent $40K in the Hip Store's Stack and $IJK in Big th's stoolr. Use the steps helow to ealeulere the expected return? variance, and standard deviation of the portfolio return. Part 1: Calculate the poIoho's return under each of the following seenarius. Shov.r work. {a} [2 marks] Portfolio return if State 1 of Eeenumy emerges: [hi [2 marks] Portfolio return if State 2 of Erononi},r emerges: {1:} [2 marks] Pnrtfuliu return if State 3 of Hamilton].r emerges: Part 2: li'irfslt1 in the table helm? ll in yuur enewers from Part 1. State ufEeenonl Preh. Pertcfelice Eli Return 1 55% [ll in, from In in Part 1] 2 10% [EJ1in,1=:mn 1b in Part1) 3 25% [ll in, From 11: in Part 1} [5 marks) New, using the infunnatiun in the ahuve talzlnle1 calculate the expected return on your pertcfeliu. Please be Sure to W far this calculation. 3,113; [6 marks] Given the infomerion uni Part 2 immediater above, oaloulate the varianoe of your portfolio return. Show ALLwork. Part 4: {3 marks} Given the information ahove1 what is the standard deviation of your portfolio return

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