Question
a. What is the standard deviation of a portfolio with 50% invested in stock A and the remainder in stock B? b. What is the
a. What is the standard deviation of a portfolio with 50% invested in stock A and the remainder in stock B?
b. What is the expected return of a portfolio with 50% invested in stock A and the remainder in stock B?
The following table shows realized rates of return for two stocks. A B Year Stock A 1 5% 2 -20% 3 -6% 4 5% 5 14% 6 16% 1 2 3 4 5 C Stock B 15% -14% -2% 28% 8% 5%
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Fundamentals of Financial Management
Authors: Eugene F. Brigham
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1305635937, 1305635930, 978-1305635937
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