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You are trying to develop as strategy for investing in two different stocks. The anticipated annual return for $ 1000 investment in each stock under
You are trying to develop as strategy for investing in two different stocks. The anticipated annual return for $ 1000 investment in each stock under three different economic conditions has the following probability distribution Stock Q Stock P Economic Probability conditions 80- 50- Recession 0.15 65 35 Slow growth 0.35 95 110 Moderate growth 0.40 190 195 High growth 0.10 Compute .a- expected return for stock A and for stock B b- standard deviation for stock A and for stock B .c- covariance for stock A and for stock B d- would you invest in stock A or in stock B? explain
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