Question
1. A firm you are analyzing has had the following returns the past 5 years: 7.0%, 6.0%, -4.0%, 3.0% and 2.0 %. What are the
1. A firm you are analyzing has had the following returns the past 5 years: 7.0%, 6.0%, -4.0%, 3.0% and 2.0 %. What are the standard deviation and variance of the past five year returns?
2. A stock has had returns of 5.05%, 12.11%, 5.83%, 6.14%, and -13.19% over the past five years. What was the holding period return for the stock?
3. You are constructing a two stock portfolio based on the information provided below. What dollar amount will you invest in each stock to achieve the desired return goal?
Stock X | Stock Y | |
Expected Return | 14.0% | 9.0% |
Goal Return of Portfolio: 10.00%
Dollar Amount to Invest: $20,000
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