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A) What is the beta of the two-stock portfolio below? B) What does a negative beta mean? C) What does a portfolio standard deviation of
A) What is the beta of the two-stock portfolio below?
B) What does a negative beta mean?
C) What does a portfolio standard deviation of .7523 mean? What is this an indication of?
| Stock A Returns | Stock B Returns | |
| 2021 | 30% | 50% |
| 2020 | 2% | 743% |
| 2019 | 11% | 26% |
| 2018 | 3% | 7% |
| 2017 | 22% | 46% |
| 2016 | 23% | -11% |
| 2015 | -12% | 8% |
| 2014 | 27% | 48% |
| 2013 | 32% | 344% |
| 2012 | 18% | 19% |
| Market Returns (%) | |
| 2021 | 26.89 |
| 2020 | 16.26 |
| 2019 | 28.88 |
| 2018 | -6.24 |
| 2017 | 19.42 |
| 2016 | 9.54 |
| 2015 | -0.73 |
| 2014 | 11.39 |
| 2013 | 29.6 |
| 2012 | 13.41 |
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Finance And Control For Construction
Authors: Chris March
1st Edition
0415371155, 978-0415371155
