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PLEASE USE EXCEL Consider the following two funds and their estimated returns under different states of the economy: State of Probability Estimated Return (Fund A)
PLEASE USE EXCEL
Consider the following two funds and their estimated returns under different states of the economy: State of Probability Estimated Return (Fund A) Estimated Return (Fund B) economy Great 30% 10% 25% Average 30% 15% 11% Poor 40% 20% 15% Calculate the following: a. Expected return for fund A and for fund B b. Standard deviation of returns for fund A and fund B c. Covariance between returns of fund A and fund B d. Correlation between returns of fund A and fund B If you invest $2,000 in Fund A and $8,000 in Fund B, Calculate the following: e. Portfolios' Expected Return f. Portfolio's Standard DeviationStep by Step Solution
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