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Use the following probability distribution. a) Find the expected rate of return on Stock X. (3 pts) b) Find the expected rate of return on

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Use the following probability distribution. a) Find the expected rate of return on Stock X. (3 pts) b) Find the expected rate of return on Stock Y. ( 3 pts) c) Find the standard deviation of Stock X. (3 pts) d) Find the standard deviation of Stock Y. (3 pts) e) Find the covariance between Stock X and Stock Y. ( 3 pts) Suppose that you construct a two-stock portfolio as follows: f) Find the portfolio's expected rate of return. ( 3 pts) g) Find the portfolio's standard deviation. ( 3 pts) h) Compare standard deviations of Stock X, Stock Y, and your portfolio. Explain your portfolio's risk in terms of diversification. (3 pts)

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