Question
Consider the following annual returns on 2 stocks: Year HCA WLMT 2015 35% 3% 2014 20% 5% 2013 3% 9% 2012 -12% 15% Assume you
Consider the following annual returns on 2 stocks:
| Year | HCA | WLMT |
| 2015 | 35% | 3% |
| 2014 | 20% | 5% |
| 2013 | 3% | 9% |
| 2012 | -12% | 15% |
Assume you create a portfolio with equal weight in each stock. Calculate the expected return of the portfolio.
Calculate the standard deviation of the equally weighted portfolio.
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Introduction To Derivatives And Risk Management
Authors: Robert Brooks, Don M Chance, Roberts Brooks
8th Edition
0324601212, 9780324601213
