What are the expected returns for both stock a

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Question: There are three economy situations and two stocks. Information is as follows. Assume you have $10,000 and allocate $4,000 on stock A.

Economy

 

Stock A

Stock B

Booming

0.3

10%

20%

Neutral

?

5%

0%

Recession

0.5

0%

-10%

(Answer format: keep 1 digit after decimal point in %. For example, 1.56% -> 1.6%)

a. What are the expected returns for both stock A and B , respectively?

b. What is the standard deviation/ risk for stock A?

c. What is the expected portfolio?

d. What is the portfolio return when economy is booming?

Reference no: EM133377386

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