Question: Please show your work and do not use excel. (20 points) You've estimated future returns for two stocks, using economic scenarios. Your predictions are summarized

Please show your work and do not use excel. (20 points)

Please show your work and do not use excel.

(20 points) You've estimated future returns for two stocks, using economic scenarios. Your predictions are summarized in the table below: Return on Scenario Probability Stock A Stock B Severe recession (135) (-20) Mild recession .05 .00 Normal growth .15 Boom 55 .25 20 30 30 .25 .20 Standard deviation .287 .179 Assume you decide to invest 40% of your money in stock A and 60% of your money in stock B. What will be your portfolio's a. Expected return? b. Standard deviation

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