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Topic ??011 Lexdasd Systems Privacy Policy ITechSipport i Feedback tven 2.829 ianov 201,f7:36ahlemsenter e here to search 36:37) I 6:44:56PM MST Problem I (10 pts.)

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Topic ??011 Lexdasd Systems Privacy Policy ITechSipport i Feedback tven 2.829 ianov 201,f7:36ahlemsenter e here to search 36:37) I 6:44:56PM MST Problem I (10 pts.) nvestment purposes. Below are possible rates of return on the two stocks. Stock A 7% 11% Stock B 13% 5% 1. Calculate the expected return and standard deviation for each stock assuming 2. Calculate the covariance and correlation coefficient between the two stocks. 3. Assume that Senor Madrid forms a portfolio in which he invests 66.67 of his equal probability of occurrence wealth in Stock A and the remaining 33.33 percent in Stock B, what are the expected return and standard deviation of his portfolio? 4. Discuss your results

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