Question: D Question 6 4 pts Consider the following stock return scenarios for three stocks Economy Stock A Stock B Stock C Up 8% 2% 12%

 D Question 6 4 pts Consider the following stock return scenarios

D Question 6 4 pts Consider the following stock return scenarios for three stocks Economy Stock A Stock B Stock C Up 8% 2% 12% Average 5% 3% 0% Down 0% 4% -5% If each state of the economy is equally likely, calculate the expected return and population standard deviation for a portfolio invested entirely in Stock A. Which stock should be added to the portfolia to reduce risk? expected return 4.33%; standard deviation 3.30%; add stock B expected return 5.00%; standard deviation 3.30%; add stock C expected return 5.00%; standard deviation 2.00%; add stock C expected return 4.33%; standard deviation 2.00%; add stock B

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