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Richard must decide how to allocate the capital in his portfolio. Richard has $56,000 available to invest. He finds the rates of return for four

Richard must decide how to allocate the capital in his portfolio. Richard has $56,000 available to invest. He finds the rates of return for four stocks for the past 12 years and the results are given below. Richard plans to invest 25% of his funds in each stock.

a) How much will he invest in each stock?)

b) The expected value of Richard's porfolio is: (Round your answer to one one-hundreth of a percent)

c) The standard deviation of Richard's portfolio is: (Round your answer to one one-hundredth of a percent)

Year Stock A (%) Stock B (%) Stock C (%) Stock D (%)

1 -5.450 -16.720 5.290

-2.240

2 7.960 23.510 -5.438 4.465

3 12.300 36.530 -8.910

6.635

4 14.300 42.530 -10.510 7.635

5 -16.350 -49.420 14.010 -7.690

6 16.070 47.840 -11.926 8.520

7 4.470 13.040 -2.646 2.720

8 13.210 39.260 -9.638 7.090

9 8.750 25.880 -6.070 4.860

10 8.960 26.510 -6.238 4.965

11 -5.290 -16.240 5.162 -2.160

12 -8.350 -25.420 7.610 -3.690

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