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Glory (50% of his portfolio is in each stock. Each stock's expected return for the next year will depend on market conditions. The stock's expected returns if there are poor, average, or great market conditions are shown below:

Market Condition: POOR Probability: 0.25 Kelevra: -12% Old Glory: -2%
Market Condition:AVERAGE Probability: 0.50 Kelevra: 14% Old Glory: 6%
Market Condition: GREAT Probability: 0.25 Kelevra: 46% Old Glory: 14%

-What is the portfolio's expected return over the next year? 10%?

-What is expected standard deviation of portfolio return?

-What is the coefficient of variation for the portfolio's expected return?
Thanks

 

Basic Finance, Finance

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