Question: Just need help figuring out how to find the E(rp) and Standard Deviation for the last question, thanks! An investor is considering the purchase of

Just need help figuring out how to find the E(rp) and Standard Deviation for the last question, thanks!

An investor is considering the purchase of Gryphon stock, which has returns given in the table below. Scenario Recession Normal Economy Boom Probability 0.24 10.4 10.36 Rate of Return -2% 19% 16% Calculate the expected return and standard deviation of Gryphon. Round your answers to 2 decimal places. Enter your answers below. E(r) = 8.88 Correct response: 8.88% Std. Dev. = 6.83 Correct response: 6.830.01% The investor decides to diversity by investing $9,000 in Gryphon stock and $6,000 in Royal stock, which has an expected return of 8.5% and a standard deviation of 6.2%. The correlation coefficient for the two stocks' returns is 0.6. Calculate the expected return and standard deviation of the portfolio. Round your answers to 2 decimal places. Enter your answers below. E(rp) = 8.73 Correct response: 8.730.01% Std. Dev. = 5.93 Correct response: 5.9310.02% Suppose the investor decides to invest an additional $5,000 in a treasury bill yielding 2.5%. What will be the expected return and standard deviation of this portfolio. Round your answers to 2 decimal places. E(rp) = Number % Std. Dev. = Number % An investor is considering the purchase of Gryphon stock, which has returns given in the table below. Scenario Recession Normal Economy Boom Probability 0.24 10.4 10.36 Rate of Return -2% 19% 16% Calculate the expected return and standard deviation of Gryphon. Round your answers to 2 decimal places. Enter your answers below. E(r) = 8.88 Correct response: 8.88% Std. Dev. = 6.83 Correct response: 6.830.01% The investor decides to diversity by investing $9,000 in Gryphon stock and $6,000 in Royal stock, which has an expected return of 8.5% and a standard deviation of 6.2%. The correlation coefficient for the two stocks' returns is 0.6. Calculate the expected return and standard deviation of the portfolio. Round your answers to 2 decimal places. Enter your answers below. E(rp) = 8.73 Correct response: 8.730.01% Std. Dev. = 5.93 Correct response: 5.9310.02% Suppose the investor decides to invest an additional $5,000 in a treasury bill yielding 2.5%. What will be the expected return and standard deviation of this portfolio. Round your answers to 2 decimal places. E(rp) = Number % Std. Dev. = Number %

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