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the full question has been solved from a-e, but the f section was not solved. Here I posted the question again and made F into

the full question has been solved from a-e, but the f section was not solved. Here I posted the question again and made F into two sections. I am attaching the main question as well. image text in transcribed A and B. Please solve for A and B image text in transcribed

Assume that you recently graduated and you just landed a job as a financial planner with the Cleveland Clinic. Your first assignment is to invest $100,000. Because the funds are to be invested at the end of one year, you have been instructed to plan for a one-year holding period. Further, your boss has restricted you to the following investment alternatives, shown with their probabilities and associated outcomes. Market Port. State of Economy Probability Recession 0.1 Below Avers 0.2 Average 0.4 Above Aver: 0.2 Boom 0.1 T-Bills 8.00% 8.00% 8.00% 8.00% 8.00% American Alta Inds. Repo Men Foam -22.0% 28.0% 10.0% -2.0% 14.7% -10.0% 20.0% 0.0% 7.0% 35.0% -10.0% 45.0% 50.0% -20.0% 30.0% -13.0% 1.0% 15.0% 29.0% 43.0% Barney Smith Investment Advisors recently issued estimates for the state of the economy and the rate of return on each state of the economy. Alta Industries, Inc. is an electronics firm; Repo Men Inc. collects past due debts; and American Foam manufactures mattresses and various other foam products. Barney Smith also maintains an "index fund" which owns a market-weighted fraction of all publicly traded stocks; you can invest in that fund and thus obtain average stock market results. Given the situation as described, answer the following questions. a. Calculate the expected rate of return on each alternative. b. Calculate the standard deviation of returns on each alternative. c. Calculate the coefficient of variation on each alternative. d. Calculate the beta on each alternative. e. Do the SD, CV, and beta produce the same risk ranking? Why or why not? f. Suppose you create a two-stock portfolio by investing $50,000 in Alta Industries and $50,000 in Repo Men. Calculate the expected return, standard deviation, coefficient of variation, and beta for this portfolio. How does the risk of this two-stock portfolio compare with the risk of the individual stocks if they were held in isolation? Suppose you create a two-stock portfolio by investing $50,000 in Alta Industries and $50,000 in Repo Men. Probability T-Bills Alta Inds. Repo Men State of Economy American Foam Market Port Recession 0.1 8.00% -22.0% 28.0% 10.0% -13.0% Below Average 0.2 8.00% -2.0% 14.7% -10.0% 1.0% Average 0.4 8.00% 20.0% 0.0% 7.0% 15.0% Above Average 0.2 8.00% 35.0% -10.0% 45.0% 29.0% Boom 8.00% 50.0% -20.0% 30.0% 43.0% Tbills American Foam Alta Inds. Repo Men Market Port Expectedreturn 8% 17.40% 1.74% 13.80% 15.00% Variance 0% 4.01% 1.79% 3.54% 2.35% Standard Deviation 0% 20.04% 13.36% 18.82% 15.34% coefficient of variation 0% 115.15% | 768.03% 136.37% 102.24% Beta 0.00 1.29 -0.86 0.68 1.00 A. Calculate the expected return, standard deviation, coefficient of variation, and beta for this portfolio. B. How does the risk of this two-stock portfolio compare with the risk of the individual stocks if they were held in isolation

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