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Qn4: Assume a two-stock portfolio created with $50,000 is invested in both HT and Collections. The expected returns are given below: - Calculate the portfolio's
Qn4: Assume a two-stock portfolio created with $50,000 is invested in both HT and Collections. The expected returns are given below: - Calculate the portfolio's return for each state of economy and fill them in the last column, under "Portfolio" (Hint: The portfolio's expected return is a weighted average of the returns of the portfolio's component assets). - Calculate the portfolio's expected return (Hint: You have to incorporate the probability distribution of each state of economy). - Calculate the portfolio's standard deviation
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