Question: Financial management (please give a correct answer without using chat gpt) Using the information contained in the table below, answer the questions in the
Financial management (please give a correct answer without using chat gpt) Using the information contained in the table below, answer the questions in the issue. Probability associated with each state Period of recession 0.3 Period normal 0.1 Period of prosperity ? 1. What are the expected returns and standard deviations of securities A and B? 2. Let's assume you have a total of $400,000. If you invest $100,000 in stock B and the rest in stock A. a) What would be the expected return on the portfolio? b) Determine the standard deviation of the portfolio. Rate yield Rate yield of title A of title B -15% 20% 20% 30% 60% 40%
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