Question
Chapter 12 Question: 6 Stock A Stock B 1 0.11 0.04 2 0.05 0.01 3 0.13 0.06 4 0.01 0.02 5 0.09 0.02 a. What
Chapter 12 Question: 6
| Stock A | Stock B |
|
| 1 | 0.11 | 0.04 |
| 2 | 0.05 | 0.01 |
| 3 | 0.13 | 0.06 |
| 4 | 0.01 | 0.02 |
| 5 | 0.09 | 0.02 |
a. What are the expected returns of the two stocks?
b. What are the standard deviations of the returns of the two stocks?
c. If their correlation is 0.46, what is the expected return and standard deviation of a portfolio of 62% stock A and 38% stock B?
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Equity Valuation And Portfolio Management
Authors: Frank J. Fabozzi, Harry M. Markowitz
1st Edition
047092991X, 9780470929919
