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You have a portfolio comprising $4,200 of Stock G and $5,300 of Stock H. State of Probability of Rate of Return Economy State of Economy

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You have a portfolio comprising $4,200 of Stock G and $5,300 of Stock H. State of Probability of Rate of Return Economy State of Economy if State Occurs Stock G Stock H Boom 18 18 .09 Normal 82 .24 11 Answer the following questions: i) What is the weight of stocks G and H in your portfolio? (2 pnts) ii) what is the expected return of your portfolio? (hint: please consider portfolio weight, probability of economy, and return to calculate this) (5 pnts) iii) Suppose, company G has a beta of .96, and stock H has a beta of 1.36. Which stock is riskier? (3 pnts) iv) Determine the variance of stock G only using different economic situations. (hint: you do not have to consider portfolio weights here, please focus on stock G only) (5 prits)

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