Question
a. What are the expected returns of the two stocks? The expected return for stock A is _____. (Round to three decimal places.) The expected
a. What are the expected returns of the two stocks?
The expected return for stock A is _____. (Round to three decimal places.)
The expected return for stock B is _____. (Round to three decimal places.)
b. What are the standard deviations of the returns of the two stocks?
The standard deviation of the return for stock A is _____. (Round to four decimal places.)
The standard deviation of the return for stock B is _____. (Round to four decimal places.)
c.. If their correlation is 0.43, what is the expected return and standard deviation of a portfolio of 80% stock A and 20% stock B?
The expected return for the portfolio is ____. (Round to four decimal places.)
The standard deviation of the return for the portfolio is ____. (Round to four decimal places.)
Stocks A and B have the following returns: Stock A 1 0.09 2 0.06 3 0.15 4 -0.02 5 0.07 Stock B 0.04 0.04 0.03 0.01 -0.03Step by Step Solution
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