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A. Given the following historical-returns on Alpha stock, calculate the average return, variance, standard deviation, and coefficient variation for this stock. Year 2016 2017
A. Given the following historical-returns on Alpha stock, calculate the average return, variance, standard deviation, and coefficient variation for this stock. Year 2016 2017 2018 2019 2020 Alpha Return 4% 10% -2% 22% -8% B. Suppose you equally invest $700,000 in two stocks with the following characteristics: Stock X has an expected return of 12% and a standard deviation of 8%, Stock T has an expected return of 22% and a standard deviation of 14%. Determine the expected return and standard deviation on a portfolio of stocks X and T two-stocks are uncorrelated and when they are negatively perfectly correlated. Interpret and compare your answers in these two cases.
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Average return for Alpha stock 52 Variance 9314 Standard Deviation 965 Coefficient of Variation 18558 Expected return on the portfolio of stocks X and ...Get Instant Access to Expert-Tailored Solutions
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