What are the expected returns for both stock a

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Reference no: EM133377386

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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