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What is the expected return on stock v and stock w

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Question - You own two stocks V and W. Use the information in the table below to answer the following questions:

 

Probability

Return on stock V

Return on stock W

Boom

0.8

14%

16%

Bust

0.2

-4%

4%

Required -

a. What is the expected return on Stock V and Stock W?

b. What is the standard deviation of Stock W?

c. What is the expected return on a $1000 portfolio that has $600 invest in V and the rest in W.

Reference no: EM133118873

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