Question: Consider the following scenario analysis: Calculate the return for each stock. Which stock provides higher returns? Calculate the risk for each stock. Which stock has

Consider the following scenario analysis: Calculate the return for each stock.

Consider the following scenario analysis: Calculate the return for each stock. Which stock provides higher returns? Calculate the risk for each stock. Which stock has more risk? You decide to invest in a portfolio consisting of 21 percent Stock X, 45 percent Stock Y, and the remainder in Stock Z. Based on the following information, what is the standard deviation of your portfolio? Would you prefer to invest in the portfolio, or in one of the Stocks only? Explain the benefit of diversification

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