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Question #2 (10 Marks) 1. Metro Inc and Jamieson Wellness have the following probability distributions: Demand Metro Jamieson Inc Probability Wellness Company's Expected Expected Products

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Question #2 (10 Marks) 1. Metro Inc and Jamieson Wellness have the following probability distributions: Demand Metro Jamieson Inc Probability Wellness Company's Expected Expected Products Return Return Strong 0.3 12% 13% Average 0.4 5% 4% Weak 0.3 15% 12% for A. Calculate the expected rates of returns for Metro & Jamieson B. Calculate the Standard Deviation for Metro & Jamieson C. Calculate the Coefficient of Variation for the Metro & Jamieson, and comment on the results. If a portfolio consists of 60% Metro & 40% Jamieson: D. Calculate the Portfolio's expected return. E. Calculate the portfolio's standard deviation. Assume the correlation between the two stocks is 0.70 F. Calculate the portfolio's standard deviation. Assume the correlation between the two stocks is -0.70

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