Question: Crazy Train Automotive stock has an expected return of 9% and a standard deviation of 16.5%. Mr. Brownstone Property Management Co. stock has an expected
Crazy Train Automotive stock has an expected return of 9% and a standard deviation of 16.5%. Mr. Brownstone Property Management Co. stock has an expected return of 18% and a standard deviation of 28%. The stocks have a correlation of 0.55. Assuming a portfolio is comprised of an investment of $70,000 in Mr. Brownstone stock and $30,000 in Crazy Train stock, answer the following: (a) what is the expected return of the portfolio? (2 points) (b) what is the coefficient of variation for the portfolio? [2 points) (c) what is the coefficient of variation for Crazy Train stock? [2 points) (d) what is the coefficient of variation for Mr. Brownstone stock? [2 points] Be sure to show your work as muchas possil Clearly indicate your answers to each question. D G Paragraph R
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