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step by step solutions please. no excel solutions 1. Consider the following probability distribution for stocks A and B: (Hint: Use five decimal places for

image text in transcribedstep by step solutions please. no excel solutions
1. Consider the following probability distribution for stocks A and B: (Hint: Use five decimal places for the numbers in your calculations.) B Returns - 2 % A Returns 12% Probability 0.30 State Boom 2% 8% 0.60 Normal 6% 4% 0.10 Bust What are the expected rates of return for stocks A and B? b. What are the variances for A and B? a. c. What are the standard deviations for A and B? d. What are the coefficient of variations for A and B? Which stock is more risky? Why? e. If you invest 75 % of your money in A and 25 % in B, what would be your portfolio's expected return? f. If you desire to form a portfolio with an expected rate of return of 8 % , what percentage of your money must you invest in A and B, respectively

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