Calculate each stock expected return

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The following table shows the annual returns over time for two stocks.

Probability  0.10         0.20       0.40     0.20       0.10

A -            3%           2             7       12         17

B -             10%         1         8            16          24

Question 1: Calculate each stock's expected return, standard deviation, and coefficient of variation. If a portfolio is made up of 40% of stock A and 60% of stock B: a. Calculate the portfolio's expected rate of return. b. Calculate the portfolio's standard deviation. Assume the correlation between the two stocks is 0.40.

Reference no: EM132533249

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