Question
Consider the following 6 months of returns for 2 stocks and a portfolio of those 2 stocks: The portfolio is composed of 50% of Stock
Consider the following 6 months of returns for 2 stocks and a portfolio of those 2 stocks:
The portfolio is composed of 50% of Stock A and 50% of Stock B.
Stock A: 3,6,-5,-4.1,5
Stock B: -1,-4,7,-2,3,-3
Portfolio: 1,1,1,1,1,1
a. What is the expected return and standard deviation of returns for each of the two stocks?
b. What is the expected return and standard deviation of returns for the portfolio?
c. Is the portfolio more or less risky than the two stocks? Why?
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Bitcoin Complete Guide To Bitcoin Understand Everything From Getting Started With Bitcoin Sending And Receiving Bitcoin To Mining Bitcoin
Authors: Mr Mark Gates
1st Edition
1974565491, 978-1974565498
