# Question: Using the probability distribution shown below calculate the expected risk

Using the probability distribution shown below, calculate the expected risk and return estimates of each stock and of a portfolio comprised of 40% of Stock A and 60% of StockB.

## Answer to relevant Questions

Annie is curious to know what her portfolio’s CAPM-based expected rate of return should be. After doing some research she figures out the market values and betas of each of her 5 stocks (shown below) and is told by her ...What are the payback periods of Projects E, F, G and H? Assume all the cash flows are evenly spread throughout the year. If the cutoff period is three years, which projects do youaccept?Quark Industries has four potential projects, all with an initial cost of $2,000,000. The capital budget for the year will allow Quark Industries to accept only one of the four projects. Given the discount rates and the ...Chandler and Joey were having a discussion about which financial model to use for their new business. Chandler supports NPV and Joey supports IRR. The discussion starts to get heated when Ross steps in and states, ...Regions Bank is debating between two the purchase of two software systems; the initial costs and annual savings of which are listed below. Most of the directors are convinced that given the short lifespan of software ...Post your question