Question: step by step solutions please. no excel solutions 1. Consider the following probability distribution for stocks A and B: (Hint: Use five decimal places for

 step by step solutions please. no excel solutions 1. Consider thestep by step solutions please. no excel solutions

1. Consider the following probability distribution for stocks A and B: (Hint: Use five decimal places for the numbers in your calculations.) B Returns - 2 % A Returns 12% Probability 0.30 State Boom 2% 8% 0.60 Normal 6% 4% 0.10 Bust What are the expected rates of return for stocks A and B? b. What are the variances for A and B? a. c. What are the standard deviations for A and B? d. What are the coefficient of variations for A and B? Which stock is more risky? Why? e. If you invest 75 % of your money in A and 25 % in B, what would be your portfolio's expected return? f. If you desire to form a portfolio with an expected rate of return of 8 % , what percentage of your money must you invest in A and B, respectively

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