In: Finance
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).
Please refer to below spreadsheet for calculation and answer. Cell reference also provided.
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