Question: Based on the following information, calculate (a) the expected return and (b) standard deviation for the two stocks: Rate of Return if State Occurs Recession

  1. Based on the following information, calculate (a) the expected return and (b) standard deviation for the two stocks:
  2. Rate of Return if State Occurs
  3. Recession.15 .05 -.17
  4. Boom.20 .13 .29
  5. If you invest half of your funds in A and rest in B, (c) what is the portfolio expected return? (d) What is the portfolio standard deviation

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