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# Given stocks 1 and 2 with the following characteristics, solve for each stocks expected return, standard deviation and covariance between the stocks....

Given stocks 1 and 2 with the following characteristics, solve for each stock´s expected return, standard deviation and covariance between the stocks. Solve for the equally weighted portfolio´s expected return and standard deviation.

Stock Bullish Return (p=0.5) Average Return (p=0.3) Bearish Return (p=0.2)

1 25% 10% -25%

2 5% -5% 35%

Answer Expected Return of stock 1= 10.50% Expected Return of stock 2 = 8% Standard... View the full answer

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