Question: *Answer without using excel Holding period returns in percent State of Nature A B 1 10 12 2 5 5 3 0 -15 20 4

*Answer without using excel Holding period returns in percent State of

*Answer without using excel

Holding period returns in percent State of Nature A B 1 10 12 2 5 5 3 0 -15 20 4 -8 Assume each state of nature has an equal probability of occurrence. a) Calculate the expected rate of return for A and B b) Calculate the variance, standard deviation, and coefficient of variation for A and B c) Calculate the covariance and correlation between A and B Assuming you invest 60% of your net worth in A and 40% in B d) Calculate the expected return of the 2 asset portfolio e) Calculate the variance and standard deviation of the 2 asset portfolio

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