Consider the following information for a particular investor. The investor has invested K60, 000 H and K150000 in stock

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Consider The Following Information For A Particular Investor The Investor Has Invested K60 000 H And K150000 In Stock 1 (56.25 KiB) Viewed 29 times

Consider the following information for a particular investor. The investor has invested K60, 000 H and K150000 in stock I, and K90000 in J. Rate of Return if State Occurs Economic Probability Stock H Stock I condition (P) Boom 0.20 30% 45% Pleasant 0.20 12% 10% Bothersome 0.50 2% -5% Terrifying 0.10 -20% -30% Calculate and interpret: a) Expected return of investing in each of the three stocks. b) The expected rate of return for the portfolio c) The volatility (standard deviation for each of the stocks). d) The coefficient of variation for each of the stocks? e) The co-variance between stock H and I, H and J, and I and J. f) The total portfolio risk Stock J 33% 15% -5% -9% [3 marks] [3 Marks] [6 Marks] [3 Marks] [6 Marks] [4 Marks]