Question: please answer both questions. need explanation on how answers were arrived. QUESTION 3 Consider the following probability distribution for stocks A and B: State Probability
please answer both questions.
need explanation on how answers were arrived.
QUESTION 3 Consider the following probability distribution for stocks A and B: State Probability Return on Stock A Return on Stock B 0.15 8 8 2 0.20 13% 7. 3 0.15 12 4 0.30 14 9 5 0.20 16. 119 If you invest 35% of your money in A and 65% in B. what would be your portfolio's expected rate of return and standard deviation? O 9.9%; 3% 9.9%; 1.196 10%; 1.79 O 10%: 3% QUESTION 4 Consider the following probability distribution for stocks A and B: State Probability Return on Stock A Return on Stock B 0.10 10 8 2 0.20 13 7 3 0.20 12 6. 0.30 14. 90 5 0.20 159 8 The coefficient of correlation between A and B is O 0.46. 0.60 0.58 O 1.20
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
