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A person is interested in constructing a portfolio. Two stocks are being considered. Let x = percent return for an investment in stock 1,
A person is interested in constructing a portfolio. Two stocks are being considered. Let x = percent return for an investment in stock 1, and y = percent return for an investment in stock 2. The expected return and variance for stock 1 are E(x) = 8.45% and Var(x) = 22. The expected return and variance for stock 2 are E(y) = 3.20% and Var(y) = 4. The covariance between the stock returns is oxy=-5.. Using the standard deviation as a measure of risk, which of these stocks is the riskier investment? Please enter a 1 for Stock 1 and a 2 for Stock 2. Tapez votre rponse...
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