Question: 1.Define the following terms withexample: (a). Systematic risk (b). Interest rate risk. 2.The XYZ Dental Supply Co. considers the Probability distribution for the returns on

1.Define the following terms withexample: (a). Systematic risk (b). Interest rate risk. 2.The XYZ Dental Supply Co. considers the Probability distribution for the returns on Stock A and Stock B are provided below Probability Stock A Stock B 1 .40 32% 42% 2 .30 48% 36% 3 .30 06% 02% Calculate the expected return, variance, standard deviation, covariance and co relation co efficient of the Stock A and Stock B. 3. Find the expected return and Standard Deviation on a portfolio formed from stocks A and B given that the Expected Return on Stock A is 12%, the Expected Return on Stock B is 12%, the Standard Deviation on Stock A is 12%, the Standard Deviation on Stock B is 26%, the Correlation coefficient between the returns on stocks A and B is -0.92, and the Weight of Stock A is 70%
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