Stocks X and Y have the following probability distributions of expected future returns: Probability X Y 0.3 &nb

Stocks X and Y have the following probability distributions of expected future returns:

Probability      X      Y

      0.3      2%      25%
      0.4      12%      20%
      0.3      20%      0%

One investor invests 40% in stock X and 60% in stock Y. Calculate the expected return, standard deviation, and coefficient of variation Stocks X and Y. Compute the expected rate of return for the portfolio.

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jeff jeffy answered 2 years ago

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