Instructions: Either by hand or using Excel calculate the Expected Returns, Standard Deviations, and Coeffiecent of Variation for the stocks and for the portfolio given the two scenarios below. In other words,

you should fill in all of the boxes that are shaded in green $($Please note there are two questions below that also need to be answered$)$:

Scenario $1$: Weighted $30\%$ Tesla, $20\%$ IBM, $20\%$ GE$,$ and $30\%$ Amazon Scenario $2$: Weighted $10\%$ Tesla, $20\%$ IBM, $20\%$ GE$,$ and $50\%$ Amazon

Weights $0\mathrm{.}30\mathrm{.}20\mathrm{.}20\mathrm{.}3$ Weights $0\mathrm{.}10\mathrm{.}20\mathrm{.}20\mathrm{.}5$

State of the World Probability of State of World

Occuring Tesla IBM GE Amazon Portfolio State of the World Probability of State of

World Occuring Tesla IBM GE Amazon Portfolio

Below Avg $0\mathrm{.}3-0\mathrm{.}120\mathrm{.}01-0\mathrm{.}01-0\mathrm{.}02$ Below Avg $0\mathrm{.}3-0\mathrm{.}120\mathrm{.}01-0\mathrm{.}01-0\mathrm{.}02$

Avg $0\mathrm{.}40\mathrm{.}040\mathrm{.}060\mathrm{.}030\mathrm{.}05$ Avg $0\mathrm{.}40\mathrm{.}040\mathrm{.}060\mathrm{.}030\mathrm{.}05$

Above Avg $0\mathrm{.}30\mathrm{.}10\mathrm{.}090\mathrm{.}070\mathrm{.}11$ Above Avg $0\mathrm{.}30\mathrm{.}10\mathrm{.}090\mathrm{.}070\mathrm{.}11$

E$($r$)$ E$($r$)$

Std Deviation Std Deviation

Coefficient of Variation Coefficient of Variation

$1)$ Did the portfolio risk increase or decrease between scenarios $1$ and $2?$

$2)$ Provide a brief explanation of why did the portfolio risk increase or decrease?you should fill in all of the boxes that are shaded in green $($Please note there are two questions below that also need to be answered$)$:

Scenario $1$: Weighted $30\%$ Tesla, $20\%$ IBM, $20\%$ GE$,$ and $30\%$ Amazon

Did the portfolio risk increase or decrease between scenarios $1$ and $2?$

Provide a brief explanation of why did the portfolio risk increase or decrease?

Scenario $2$: Weighted $10\%$ Tesla, $20\%$ IBM, $20\%$ GE$,$ and $50\%$ Amazon

the portfolio risk increase or decrease between scenarios $1$ and $2?$