refer to the table of data below and answer the questions that follow economic state probability of...

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Finance

refer to the table of data below and answer the questions thatfollow
economic state probability of economic state return on stock Jreturn on stock K
bear 0.25 -0.02 0.034
normal 0.60 0.138 0.062
bull 0.15 0.218 0.092
calculate the expected return of each stock
if a portfolio was created with from 30% of stock j and 70% ofstock k what is the expected return of the portfolio?
calculate the standard deviation of each stock?
calculate the covariance between the two stocks
calculate the correlation coefficient between the two stocks
what is the portfolio standard deviation?

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4.3 Ratings (935 Votes)

Stock J Scenario Probability Return rate of return probability Bear 025 2 05 Normal 06 138 828 Bull 015 62 093 Expected return sum of weighted return 871 Standard deviation of Stock J Stock K Scenario Probability Return rate of return probability Bear 025 34 085 Normal 06 62 372 Bull 015 92 138 Expected return See Answer

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