You have 75 minutes to complete Exam 1.Do not start the exam…

You have 75 minutes to complete Exam 1.Do not start the exam until you are ready because you will only have 1 chance to complete it.The exam will close once your time is up, so watch your time carefully.You can not open the exam once the due date is passed, so please make sure to turn the exam in on time.This is an open book test, but all notes must be printed out and if you have an e-book, please make sure that you have sent me your URL. Honorlock is the proctoring system used for this exam, so please make sure you have it downloaded beforehand.

Assume you have $100 in stock 1 and $200 in stock 2. Stock 1…

Assume you have $100 in stock 1 and $200 in stock 2. Stock 1 and Stock 2 have following probability distribution:                                     Probability          Return on Stock 1           Return on Stock 2Recession                         0.1                           -0.10                               -0.04Normal                             0.6                             0.02                                0.01Expansion                        0.3                             0.10                                 0.03   What is your portfolio weight in Stock 2?