Question: a. What is the expected return for stocks X and Y? b. What is the standard deviation of returns on stocks X and Y? c.

 a. What is the expected return for stocks X and Y?

a. What is the expected return for stocks X and Y? b. What is the standard deviation of returns on stocks X and Y? c. Assume you invest your $10,000 portfolio in $9,000 of stock X and $1,000 of stock Y. What is the expected return on your portfolio?

\begin{tabular}{|lccc|} \hline & Bear Market & Normal Market & Bull Market \\ \hline Probability & 0.2 & 0.5 & 0.3 \\ Stock X & 20% & 18% & 50% \\ Stock Y & 15% & 20% & 10% \\ \hline \end{tabular}

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