Question

You are considered two investment options, which are expected to behave differently in different political situations as follow:

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 portfolioconsisting of 50% in A and 50% in B)

(Work with Excel and copy your clean answer here)

Answer 1