Question
(b) A risky portfolio contains three risky stocks listed below. The standard deviation of the risky portfolio is 30%, and the risk-free rate is 5%.
(b) A risky portfolio contains three risky stocks listed below. The standard deviation of the risky portfolio is 30%, and the risk-free rate is 5%. The market expected return is 12% and market standard deviation is 20%.
|
| Weight in Portfolio | Expected Return | Std. Dev. |
| Stock A | 50% | 15% | 40% |
| Stock B | 25% | 20% | 40% |
| Stock C | 25% | 8% |
|
- Suppose you choose to invest 60% of a portfolio in the risky portfolio and the rest in a risk-free money market. What is the expected return and standard deviation of your complete portfolio?
- You form another portfolio by combining stocks A and B with equal weight. The standard deviation of the portfolio is 35%, what must be the correlation coefficient between the two stocks?
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Impact Of Aircraft Sourcing And Financing On Financial Success A Strategic View On Basic Aircraft Sourcing And Financing Characteristics And Their Impact On A Stock Market And Long Term Financial Performance Of A Aircraft Operating And Holding Companies
Authors: Ralf Günther
1st Edition
3658240938,3658240946
