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d. Calculate the portfolio's Standard Deviatio OPORTPOLIO Calculate the covariance (COVAB) e. COVAB= f. Calculate the Correlation Coefficient for A and B (pAB) Be sure
d. Calculate the portfolio's Standard Deviatio OPORTPOLIO Calculate the covariance (COVAB) e. COVAB= f. Calculate the Correlation Coefficient for A and B (pAB) Be sure to show the formula! PAB= Use the following information for (a) through (f): State of the Economy Boom Normal Recession Probability of State Return on B 8% Return on A 16% 7% -12% 30% 50% 20% 2% 5% 4.40% 6.84 2.61% E(Rt) VARAset 5-90% 95-29 9.76% OAsset BAst -90 1.45 a. It you invest 75% in stock A and 25% in stock B, what would be your weighted portfolio Beta? Brortfolio= If you invest 75% in stock A and 25% in stock B, what would be the expected return on the portfolio? b. E(RPORTPOLIO) Calculate the portfolio variance by filling in the table below as one stage to get there. c. Probably of State State of The Economy Return on Portfolio Please FILL IN oom 30% Normal 50% Recession 20% VARPORTFOLIO Page 15 d. Calculate the portfolio's Standard Deviatio OPORTPOLIO Calculate the covariance (COVAB) e. COVAB= f. Calculate the Correlation Coefficient for A and B (pAB) Be sure to show the formula! PAB= Use the following information for (a) through (f): State of the Economy Boom Normal Recession Probability of State Return on B 8% Return on A 16% 7% -12% 30% 50% 20% 2% 5% 4.40% 6.84 2.61% E(Rt) VARAset 5-90% 95-29 9.76% OAsset BAst -90 1.45 a. It you invest 75% in stock A and 25% in stock B, what would be your weighted portfolio Beta? Brortfolio= If you invest 75% in stock A and 25% in stock B, what would be the expected return on the portfolio? b. E(RPORTPOLIO) Calculate the portfolio variance by filling in the table below as one stage to get there. c. Probably of State State of The Economy Return on Portfolio Please FILL IN oom 30% Normal 50% Recession 20% VARPORTFOLIO Page 15
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