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The holding Period Rate of Return (HPR) of stocks A and B for the past five years are: Year 2013 2014 2015 2016 2017 II.

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The holding Period Rate of Return (HPR) of stocks A and B for the past five years are: Year 2013 2014 2015 2016 2017 II. Stock B 4000 -5% Stock A 3% 5% 1% 10% 6% 3090 -10% 35% (1) Base on the information provided above, calculate the expected rate of return and standard deviation for each stock (2) Calculate coefficient of variation of each stock. If you only want to buy one stock, which one will you select? Why? risk by creating a portfolio of the combination of both stocks? Why or why not? expected rate of return and standard deviation of this portfolio. Is this portfolio better (3) Determine the correlation coefficient of returns of Stocks A and B. Can you reduce (4) If you invest 80% of money on Stock A, and another 20% on Stock B, calculate than individual stock A and B? Why? (20 points)

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