Question: Explain how you get expected return and how you got each number to get there. No excel sheet plz and do B too plz 2.

 Explain how you get expected return and how you got each

Explain how you get expected return and how you got each number to get there. No excel sheet plz and do B too plz

2. Suppose you have $1000 to invest on two kinds of assets X and Y. Asset X is risk free and gives you a return rate of 10%. Asset Y is risky. It gives you a return rate of 10%, while in additional to that, it has 0.5 probability of earning 10% capital gain, and 0.5 probability of getting10% capital loss. Assume that you invest $B on Y and the remaining money on X. (a) Write down the expected return. (b) Write down the variance of your return. (hint: the result will contain B)

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