Question
Consider the following six months of returns for two stocks and a portfolio of those two stocks: Note: The portfolio is composed of 50% of
Consider the following six months of returns for two stocks and a portfolio of those two stocks: Note: The portfolio is composed of 50% of Stock A and 50% of Stock B.
a. Find standard deviation of Stock A (round to 5 decimal places)
b. Find standard deviation of Stock B (round to 5 decimal places)
c. What is the expected return and standard deviation of returns for the portfolio?
d. Is the portfolio more or less risky than the two stocks? Why?
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Finance Applications And Theory
Authors: Marcia Cornett, Troy Adair, John Nofsinger
6th Edition
1264101589, 9781264101580
