1. 1-Samer plans to invest in Stock A and Stock B. The correlation between A and B is 0.6. The expected returns are 15% and 18% for stocks A and B, respectively. The standard deviation are 0.111 and 0.235 for Stocks A and B. Find the expected return and the standard deviation of aportfolio with 0.4 of Samer's funds in StockA.
2. 2-A stock has returns of 3%, 18%, -0.24 and 0.16 for the past four years. Based on this information, what is the standard deviation of this stock?
3. 3-The following historical returns data for the last 7 years have been gathered for stock A and the market rate of return:

I' Acrobat Reader File Edit View Window Fig; .0: E Home stud Tools case study 2.pdf X M@ 02.1363 5e LII >3 '2? no) as%-- Eds. Wed 2:32 PM q o a: 6)! Sign In .5136ng @ EMBA Corporate Finance 1- Samer plans to invest in Stock A and Stock B. The correlation between A and B is 0.6. The expected returns are 15% and 18% for stocks A and B, respectively. The standard deviation are 0.111 and 0.235 for Stocks A and B. Find the expected return and the standard deviation of a portfolio with 0.4 of Samer's funds in Stock A. 2- A stock has returns of 3%, 18%, -0.24 and 0.16 forthe past four years. Based on this information, what is the standard deviation of this stock? 3- The following historical returns data for the last 7 years have been gathered for stock A and the market rate of return: I Year Stock A % Market rate of return % , [ 2008 14 10 , | 2007 11 12 I 2006 12 11 l 2005 8 6 | 2004 14 15 2003 12 12 2003 15 14 How would you estimate the risk of this stock? How could you explain this to the investor who has no specialised knowledge on those issues so that he trusts you? What strategic trading investment would you suggest to this investor regarding stock A? 8.50X 11.00 In I}, Export PDF v 5 Create PDF A Adobe PDF Pack 01 Convert les to PDF and easily combine them with other file types with a paid subscription Select File to Convert to PDF Select File Cl :12 Edit PDF 5 Comment {If} Combine Files v Convert and edit PDFs with Acrobat Pro DC Start Free Trial