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Problem #4 (11 marks) Consider the following information for the returns of two stocks: Dollarama inc (DOL) and Manulife Financial Corp (MFC). You consider five

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Problem \#4 (11 marks) Consider the following information for the returns of two stocks: Dollarama inc (DOL) and Manulife Financial Corp (MFC). You consider five possible scenarios for the stocks' returns depending on how the economy performs over the coming year. a) Calculate the expected return for MFC. (2 marks) b) Calculate the standard deviation for MFC. ( 4 marks) c) Suppose you invest $15,000 in MFC stock and $7000 in DOL stock. What is the expected return on this portfolio? The expected return for DOL stock =10.40%. (2 marks) d) If you have $22,000 in total to invest and how much would you have to invest in each stock if you would like to have a portfolio return =9.5% ? ( 3 marks)

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