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Consider the following six months of returns for two stocks and a portfolio of those two stocks: ( Click the icon to view the monthly
Consider the following six months of returns for two stocks and a portfolio of those two stocks:
Click the icon to view the monthly returns.
Note: The portfolio is composed of of Stock A and of Stock B
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?
a What is the expected return and standard deviation of returns for each of the two stocks?
The expected return of Stock is Round to one decimal place.
The expected return of Stock B is Round to one decimal place.
The standard deviation of Stock is Round to five decimal places.
The standard deviation of Stock BConsider the following six months of returns for two stocks and a portfolio of those two stocks:
Click the icon to view the monthly returns.
Note: The portfolio is composed of of Stock A and of Stock B
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?
a What is the expected return and standard deviation of returns for each of the two stocks?
The expected return of Stock is Round to one decimal place.
The expected return of Stock B is Round to one decimal place.
The standard deviation of Stock A is Round to five decimal places.The standard deviation of Stock B is Round to five decimal places.
b What is the expected return and standard deviation of returns for the portfolio? The standard deviation of the portfolio isRound to five decimal places.
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