Question
A sample of the returns for Stock A and Stock B are shown below: YEAR STOCK A STOCK B 1 .05 .34 2 .14 -.03
A sample of the returns for Stock A and Stock B are shown below:
YEAR | STOCK A | STOCK B |
1 | .05 | .34 |
2 | .14 | -.03 |
3 | -.09 | .37 |
4 | .21 | -.17 |
5 | .02 | -.09 |
a) Given the above information, what is the expected return (ER) and standard deviation (SD) of the portfolio if 50% is invested in each stock?
b) Given the above information, what are the approximate weights of the minimum risk portfolio?
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Discrete Mathematics, Revised
Authors: Seymour Lipschutz, Marc Lipson
3rd Edition
0071615873, 9780071615877
