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The probability distribution of returns for stocks RARE and SURE are given below. Probability TRARE 0,5 -%2 0,1 %10 0,4 %15 ISURE %20 %12

 


The probability distribution of returns for stocks RARE and SURE are given below. Probability TRARE 0,5 -%2 0,1 %10 0,4 %15 ISURE %20 %12 %2 a) Please find the expected return and standard deviation for RARE and SURE. b) Please find the expected return and standard deviation of the portfolio consisting 50% of each stock. c) Would you invest in stock RARE, stock SURE or the Portfolio? Support your decision with coefficient of variation calculation.

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