Question: (a) Based on the scenario below, what is the expected return for a portfolio with the following return profile? [2 marks] Bear Normal Bull Probability

(a) Based on the scenario below, what is the expected return for a portfolio with the following return profile? [2 marks] Bear Normal Bull Probability 0.4 0.2 0.4 Rate of return -20% 10% 20% Answer the following questions based on the below table Bear Normal Probability 0.4 0.2 0.4 Stock X -10% 159 40% Stock Y -12% 20% 20% (b) What are the expected returns for stock X and Y? [2.5 Marks] (c) What are the standard deviations of returns on stock X and Y? (2.5 Marks] (d) Assume that of your Rs 1,00,000 portfolio, you invest Rs 80000 in Stock X and rest in Stock Y. What is the expected return on the portfolio Bull

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