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refer to the table economic state probability return on stock j return on stock k bear...

refer to the table

economic state probability return on stock j return on stock k

bear 0.25 -0.02 0.034

normal 0.60 0.138 0.062

bull 0.15 0.218 0.092

1. calculate the expected return of each stock

2. if a portfolio was created with from 30% of stock j and 70% of stock k, what is the expected return of the portfolio?

3. calculate the standard deviation of each stock

4. calculate the covariance between the two stocks

5. calculate the correlation coefficient between the two stocks

6. what is the portfolio standard deviation?

please show all workings... thats the only questions given

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Expert Solution

jeff jeffy answered 3 days ago
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