If you equally invest your money in a and b to form a, Finance Basics

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If you equally invest your money in a and b to form a

State	Probability	A Return	B Return
Boom	.20	18%	-7%
Normal	.50	10%	6%
Bust	.30	5%	12%

Besides, Stock A has a beta of 0.8 and stock B has a beta of 1.7

A. What are the expected rates of return for stocks A and B?

B. What are the standard deviations for A and B

C. What are the coefficients of variation for A and B? Which stock is more risky? Why?

D. If you equally invest your money in A and B to form a portfolio, what would be your portfolio's expected rate of return? What would be your portfolio's beta?

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Finance Basics: If you equally invest your money in a and b to form a

Reference No:- TGS0603821

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Recent Questions Asked Finance Basics

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Request for Solution File

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Finance Basics: If you equally invest your money in a and b to form a

Reference No:- TGS0603821

Recent Questions Asked Finance Basics

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