Security M and N have the following probability distributions of expected future returns: Probability Stock...
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Security M and N have the following probability distributions of expected future returns: Probability Stock M Stock N 0.25 10% 19% 0.45 15 - 5 0.30 --7 12 I. IT. III. Calculate the expected rate of return for each stock, Calculate the standard deviation of returns for each stock. Calculate the coefficient of variation for each stock and recommend which one you select if you take only one project. Assume that someone held a portfolio consisting of 60 percent of stock M and 40 percent of stock N and the correlation between stock M and N is - 0.61. Calculate the average rate of return and standard deviation for this portfolio IV
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