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In: Finance

You are considering two investment options, which are expected to behave differently in different political situations...

You are considering two investment options, which are expected to behave differently in different political situations as follows: Possible Outcomes Probability Stock A Stock B Returns Returns Democrats 0.25 5% 10% Republicans 0.50 10% 12% Libertarians 0.05 -6% -11% Independents 0.20 13% 16% Calculate the expected rate of return, standard deviation, and coefficient of variation for Stock A, Stock B and a portfolio consisting of 50% in A and 50% in B).

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Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

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