Question: USE EXCEL TO SHOW ALL YOUR WORK Problem 2: Given the following data: Market Condition Probability Stock A Stock B High Growth Average Low Growth

USE EXCEL TO SHOW ALL YOUR WORK Problem 2: Given the following data: Market Condition Probability Stock A Stock B High Growth Average Low Growth Poor 0.3 0.5 0.1 0.1 50% 20% 5% -15% 30% 25% 5% 0% I 1) A portfolio is formed by investing 50% of the funds in Stock A and 50% in Stock B; (A) Calculate the expected return on the portfolio. (B) Calculate the standard deviation of the portfolio. II) A portfolio is formed by investing 65% of the funds in Stock A and 35% in Stock B; (C) Calculate the expected return on the portfolio. (D) Calculate the standard deviation of the portfolio

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