Prin Frod RockA Alarge change dubte -Exp weten W Exam 3-Part 2 Show your work as you answer the following questions. You

[answerhappygod]

Prin Frod Rocka Alarge Change Dubte Exp Weten W Exam 3 Part 2 Show Your Work As You Answer The Following Questions You 1 (38.57 KiB) Viewed 28 times

Prin Frod RockA Alarge change dubte -Exp weten W Exam 3-Part 2 Show your work as you answer the following questions. You must show approprate and cal work receive credit for a correct answer, Partial credit will be awarded for partially correct solutions There are 20 points in this section. 1. Use the information below for this question Expected return and standard deviation for stocks A and are shown in the t State of Economy Probability Rate of of state of return f the economy state occurs Stock Stock A B Recession 3 -14 20 Normal 5 16 10 Boom 2 26 -05 Expected return 09 10 0866 Standard Deviation 1552 a. Suppose you have $100,000 total. If you put $50,000 in Stock A and $50,000 in Stock 8, what will be the expected return of your portfolio? (3 points). b. Calculate the standard deviation of the portfolio of Stock A and Stock B. (3 points) c. Why is the standard deviation of the portfolio not a weighted average of the standard deviations of Stocks A & B? (2 points) SO OC