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You are considered two investment options, which are expected to behave differently in different political situations as follow: Possible Outcomes Probability Stock A Stock B
You are considered two investment options, which are expected to behave differently in different political situations as follow:
Possible Outcomes | Probability | Stock A | Stock B |
Returns | Returns | ||
Democrats | 0.25 | 5% | 10% |
Republicans | 0.50 | 10% | 12% |
Libertarians | 0.05 | -6% | -11% |
Independents | 0.20 | 13% | 16% |
Calculate the expected rate of return, standard deviation, and coefficient of variation for Stock A, Stock B and a portfolioconsisting of 50% in A and 50% in B)
(Work with Excel and copy your clean answer here)
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