Question
Consider the following information on two stocks: a) Suppose you invest $60,000 into stock A, and $40,000 into stock B. Calculate the weight of A
Consider the following information on two stocks:
a) Suppose you invest $60,000 into stock A, and $40,000 into stock B. Calculate the weight of A in the portfolio.
b)Suppose you invest $60,000 into stock A, and $40,000 into stock B. Calculate the expected return of the portfolio.
c)Suppose you invest $60,000 into stock A, and $40,000 into stock B. Calculate the variance of the portfolio.
d)Suppose you invest $60,000 into stock A, and $40,000 into stock B. Calculate the standard deviation of the portfolio.
On excel please!
| P(State) | Stock A | Stock B | |
| Boom | 20% | 30% | 25% |
| Normal | 30% | 15% | -5% |
| Slow | 40% | -5% | 5% |
| Bust | 10% | -12% | 0% |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett
5th Edition
0078034663, 978-0078034664
