Question: consider the following two funds and their estimates returns under different states of the economy On excel please Consider the following two funds and their
consider the following two funds and their estimates returns under different states of the economy
On excel please Consider the following two funds and their estimated returns under different states of the economy: State of Probability Estimated Return (Fund A) Estimated Return (Fund B) 30% 4090 economy Great 130% Average Poor Calculate the following 10% 15% 25% 1190 15% a. Expected return for fund A and for fund B b. Standard deviation of returns for fund A and fund B c. Covariance between returns of fund A and fund B d. Correlation between returns of fund A and fund EB If you invest $2,000 in Fund A and $8,000 in Fund B, Calculate the following Portfolios' Expected Return Portfolio's Standard Deviation e. 7 8
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