Question: ASSIGNMENT #4 25 Points Total (Due on Tuesday, June 16, 2020) FIN 3200 Based on the following data; calculate the average return and the standard

 ASSIGNMENT #4 25 Points Total (Due on Tuesday, June 16, 2020)

ASSIGNMENT #4 25 Points Total (Due on Tuesday, June 16, 2020) FIN 3200 Based on the following data; calculate the average return and the standard deviation of returns for Stock X. (Sample data) YEAR Stock X Rate of Return 201A -5% 201B 15% 2010 30% 2010 20% 2. Based on the following data; (a) calculate the expected return and the standard deviation of returns for each stock. State of the Economy Probability Stock A Rate of Return Stock B Rate of Return Recession 0.25 6% -20% Normal Growth 0.45 7% 13% Boom 0.3 11% 33% (b) Calculate the expected return and the standard deviation on the portfolio, where the portfolio is formed by investing 65% of the funds in Stock A and the rest in Stock B. Based on the following data; State of the Economy Probability

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