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7. An investor wants to form a portfolio of WWF and GE. Information concerning the two stocks is shown below: The investor plans to buy
7. An investor wants to form a portfolio of WWF and GE. Information concerning the two stocks is shown below: The investor plans to buy 100 shares of WWF stock and 150 shares of GE stock. This means that the investor will have 25% of her portfolio in WWF and 75% in GE. a) What is the expected return for the investor holding this portfolio? b) If the standard deviation of your portfolio is 24%, calculate the 68% and 95% confidence interval for the expected returns of your portfolio. 7. An investor wants to form a portfolio of WWF and GE. Information concerning the two stocks is shown below: The investor plans to buy 100 shares of WWF stock and 150 shares of GE stock. This means that the investor will have 25% of her portfolio in WWF and 75% in GE. a) What is the expected return for the investor holding this portfolio? b) If the standard deviation of your portfolio is 24%, calculate the 68% and 95% confidence interval for the expected returns of your portfolio
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