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Question: q given the following table answer the questions state of...

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Q/ Given the following table, answer the questions:

                State of Economy                               Probability                            Possible Return for Stock A

                Boom                                     20%                                        16%

                Average                                 70%                                        7%

                Recession                              10%                                        -5%

                ___________________________________________________________

A. What is the expected return for Stock A?

B. What is the standard deviation of Stock A’s returns?

C. What is the coefficient of variation, and what does this mean?

               

D. Suppose Stock B has an expected return of 13%. What is the expected return of a

                                portfolio if you have $3500 invested in A and $6500 invested in B?

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