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(1) Calculate the expected return for the two assets given below. State Rec Norm Exp Asset A P(i) 0.25 0.50 0.25 XO 0.04 0.10 0.16 EX) ..11 os 599 .04 TO .L01094 State Rec Norm Exp Asset B ) 0.25 0.50 0.25 ) 0.16 0.10 -0.04 EX) Y TO 50 -7% (2) Calculate the standard deviation and coefficient of variationfor for the two assets given above EX) XO - E(X) (XO - E(X)/2 X(i) - E(X)/2"PO) State Rec Norm Exp Asset A Pi) 0.25 0.50 0.25 X1) 0.04 0.10 0.16 Variance Std. Dev. C.V. (round 4) E(X) X) - E(X)(x(i) - E(X)) 2 (Xi) - E(X)/2*PO State Rec Norm Exp Asset B Pi) 0.25 0.50 0.25 Xo 0.16 0.10 -0.04 Variance Std. Dev. C.V. (round 4) (3) Assume a 50%-50% weighting and compute the expected return of the portfolio. W(a)X(a) W(b)X(b) *P1) State Rec Norm Exp Portfolio Pi) 0.25 0.50 0.25 W(a) 0.50 0.50 0.50 Wb) 0.50 0.50 0.50 X(a) 0.040 0.100 0.160 X(b) 0.1600 0.1000 -0.0400 E(P) (4) Alternative method of computing the E(p). EO) WEO) Asset B WO 0.50 0.50 E(p)