a Boeing (BA) (25 ), Caterpillar (CAT) (25 ), Chevron (CVX) (25 ), Coca Cola (KO) (25 ) b BA (10 ), CAT (20 ), CVX (20 ), KO (50 ) c BA (15 ), CAT (55 ), CVX (15 ), KO (15 ) d Which portfolio would a gambler choose Explain e Which portfolio would a risk averse investor choose Explain We have record...

a Mean 0091 standard deviation 0642 b Mean 0091 standard de ...

a. Boeing (BA) (25%), Caterpillar (CAT) (25%), Chevron (CVX) (25%), Coca-Cola (KO) (25%) b. BA (10%), CAT

Question:

a. Boeing (BA) (25%), Caterpillar (CAT) (25%), Chevron (CVX) (25%), Coca-Cola (KO) (25%)
b. BA (10%), CAT (20%), CVX (20%), KO (50%)
c. BA (15%), CAT (55%), CVX (15%), KO (15%)
d. Which would a gambler choose? Explain.
e. Which would a risk-averse investor choose? Explain.

We have recorded the monthly returns for the following Dow Jones Industrials 30 listed on the New York Stock Exchange for the period January 2008 to December 2012:
3M (MMM), Alcoa (AA), American Express (AXP), AT&T (T), Bank of America (BAC), Boeing (BA), Caterpillar (CAT), Chevron (CVX), Cisco Systems (CSCO), Coca-Cola (KO), Disney (DIS), Du Pont (DD), Exxon (XOM), General Electric (GE), Hewlett-Packard (HPQ), Home Depot (HD), Intel (INTC), International Business Machines (IBM), Johnson & Johnson (JNJ), JP Morgan Chase (JPM), McDonald’s (MCD), Merck (MRK), Microsoft (MSFT), Pfizer (PFE), Proctor & Gamble (PG), Travelers (TRV), United Technologies (UTX), United Health (UNH), Verizon Communications (VZ), Wal-Mart Stores (WMT).

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...