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Calculate expected return variance and standard deviation

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Reference no: EM132778329

State of Economy          Probability       Stock S         Stock T

Boom                                  10%              12%           4%

Normal                                 65%                9%            6%

Recession                             25%                 2%               9%

You have invested $4,500 in stock S and $3,000 in stock T.

Problem 1. Calculate the expected return variance and standard deviation for the two stocks?

Problem 2. What is the expected return, variance and standard deviation of the portfolio?

Reference no: EM132778329

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