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The weather situation probability return on umbrella and ice cream stock is given in the table below: Weather Condition Probability Return on Umbrella stock Return
The weather situation probability return on umbrella and ice cream stock is given in the table below: Weather Condition Probability Return on Umbrella stock Return on Ice Cream Stock Sunny 65% 5% 20% Rainy 35% 22% 5% Required: a) Calculate the expected rate of return and risk of Umbrella stock (3 points). Calculate the expected rate of return and risk of lce cream stock (3 points). 9 Which stock is riskier? And why (3 points). d) If you invest birr 8,000 on umbrella and birr 12,000 on ice cream, what is the portfolio expected return of your investment
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