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Question 3: Following are the probability distribution of returns of portfolio of Stock A and Stock B in equal proportion of weight in each state
Question 3: Following are the probability distribution of returns of portfolio of Stock A and Stock B in equal proportion of weight in each state of economy. You are required to calculate Expected Return and Risk for individual Stocks? (5 marks) State of Economy Probability Return on Security A (%) Return on Security B (%) 1 0.2 15 (5) 2. 0.2 (5) 15 3 0.2 5 25 4 0.2 35 5 5 0.2 25 35
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