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Question Find the risk and returns of the two stocks in the table below. Find the expected return on a portfolio made up of stock

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  1. Find the risk and returns of the two stocks in the table below.
  2. Find the expected return on a portfolio made up of stock A and stock B in the table below, if both stocks are equally weighted.

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State of economy Probability Rate of return if state occurs Stock A Stock B Bear .30 -.02 .034 Normal .50 .138 .062 Bull .20 .218 .092

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