a) Determine the expected return and standard deviation of your portfolio if you invest 30%...
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Finance
a) Determine the expected return and standard deviation of your portfolio if you invest 30% in Stock A, 30% in Stock B, 30% in Stock C, and 10% in Stock D.
b) Calculate the amount of investment weights on Stock A and Stock B to achieve a portfolio of zero standard deviation.tock B.
Economic Conditions
Probability
RETURN
RETURN
RETURN
RETURN
Stock A
Stock B
Stock C
Stock D
Growth
30%
-10%
80%
60%
10%
Normal
40%
30%
50%
0%
10%
Recession
20%
50%
20%
-15%
10%
Expected Return
Variance
Standard Deviation
Answer & Explanation
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