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DEAR CHEGG EXPERTS, AS PER CHEGG'S POLICY, PLEASE HELP ME COMPLETE BOTH SUBQUESTIONS. THANK YOU...

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Finance

DEAR CHEGG EXPERTS, AS PER CHEGG'S POLICY, PLEASE HELP ME COMPLETE BOTH SUBQUESTIONS. THANK YOU AND IT WILL BE UPVOTED! image

Consider the following information about Stock A and Stock B: Rate of Return if State Occurs Probability of State of State of the Economy Economy Stock A Stock B Recession 0.2 0.07 -0.11 Normal 0.5 0.10 0.12 Boom 0.3 0.14 0.40 a. What are the expected return and standard deviation of Stock A and Stock B? (9 points) b. If Michael invests 40% in Stock A and 60% in Stock B, what are the expected return and standard deviation of Michael's portfolio? What is the covariance between Stock A and Stock B? (9 points)

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