Question: a) Determine the expected return and standard deviation of your portfolio if you invest 30% in Stock A, 30% in Stock B, 30% in Stock
| a) Determine the expected return and standard deviation of your portfolio if you invest 30% in Stock A, 30% in Stock B, 30% in Stock C, and 10% in Stock D. | |||||
| b) Calculate the amount of investment weights on Stock A and Stock B to achieve a portfolio of zero standard deviation.tock B. | |||||
| Economic Conditions | Probability | RETURN | RETURN | RETURN | RETURN |
| Stock A | Stock B | Stock C | Stock D | ||
| Growth | 30% | -10% | 80% | 60% | 10% |
| Normal | 40% | 30% | 50% | 0% | 10% |
| Recession | 20% | 50% | 20% | -15% | 10% |
| Expected Return | |||||
| Variance | |||||
| Standard Deviation | |||||
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