Question: Given the following probability distribution for assets A and B, compute the expected rate of return and standard deviation of both the assets. Which asset

 Given the following probability distribution for assets A and B, compute

Given the following probability distribution for assets A and B, compute the expected rate of return and standard deviation of both the assets. Which asset is a better investment from a risk- neutral investor's perspective? If you equally invest in assets A and B by setting up a portfolio, what will be the portfolio return? (2+4+1+1=8) Asset A Asset B Return Probability 7% 0.35 Return 5% 6% 7% 8% Probability 0.20 0.10 0.30 0.40 9% 0.40 11% 0.25

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