Question: Preferably answer without Excel. Homework 1 *Holding period returns in percent Assume each state of nature has an equal probability of occurrence. a) Calculate the

Preferably answer without Excel.

Preferably answer without Excel. Homework 1 *Holding period returns in percent Assume

Homework 1 *Holding period returns in percent Assume each state of nature has an equal probability of occurrence. a) Calculate the expected rate of return for A and B b) Calculate the variance, standard deviation, and coefficient of variation for A and B c) Calculate the covariance and correlation between A and B Assuming you invest 60% of your net worth in A and 40% in B d) Calculate the expected return of the 2 asset portfolio e) Calculate the variance and standard deviation of the 2 asset portfolio

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