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Discuss your findings. This should include: A discussion of the main statistics, such as the expected return for each stock, the standard deviation for each

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Discuss your findings. This should include:

  • A discussion of the main statistics, such as
    • the expected return for each stock,
    • the standard deviation for each stock, the expected return of the portfolio of the two stocks you selected using the various percentages allocated to each (50%-50%, 75%-25%, 25%-75%) provided in the sheet,
    • the standard deviation for each portfolio of the two stocks you selected using the various percentages allocated to each (50%-50%, 75%-25%, 25%-75%),
    • the beta of each stock,
    • the beta of a portfolio of the two stocks using the percentages allocated to each (50%-50%, 75%-25%, 25%-75%).
  • Be sure to discuss some of the key concepts too (e.g., point out the standard deviation of the portfolio is less than the weighted average of the standard deviations of the stocks in the portfolio)
Method1 Method 2 SPY QQ0 Beta Stock 1 Avg. Daily Ret Daily Std. Deviation Daily Variance 0.00046 0.00943 0.00009 0.00071 0.01314 0.00017 0.00000 0.01442 0.00021 1.31 1.31 Beta Stock 2 0.63 0.63 SPY-QQg SPY-T orrelation Coefficient 0.94165 0.41102 0.27565 SPY 0.115962279 0.149750094 QgQ 0.178481424 0.208585779 0.000576587 Annual Return Annual Std. Deviation 0.228957328 SPY-T 0.058269433 0.112483101 SPY-QQg 0.147221851 0.176606467 Expected return portfolio Std. Deviation portfolio 0.089529005 50%/50% 0.500 0.174826849 SPY-QQg 0.131592065 0.139465492 SPY-T 0.087115856 0.141277609 ggQ T 75%/25% 0.75 0.25 Expected return portfolio Std. Deviation portfolio 0.134005215 0.180793109 SPY-QQg 0.162851638 0.117250619 SPY-T 0.045052796 0.047741352 ggQ T 25%/75% 0.25 0.75 Expected return portfolio Std. Deviation portfolio 0.045052796 0.192724839 Method1 Method 2 SPY QQ0 Beta Stock 1 Avg. Daily Ret Daily Std. Deviation Daily Variance 0.00046 0.00943 0.00009 0.00071 0.01314 0.00017 0.00000 0.01442 0.00021 1.31 1.31 Beta Stock 2 0.63 0.63 SPY-QQg SPY-T orrelation Coefficient 0.94165 0.41102 0.27565 SPY 0.115962279 0.149750094 QgQ 0.178481424 0.208585779 0.000576587 Annual Return Annual Std. Deviation 0.228957328 SPY-T 0.058269433 0.112483101 SPY-QQg 0.147221851 0.176606467 Expected return portfolio Std. Deviation portfolio 0.089529005 50%/50% 0.500 0.174826849 SPY-QQg 0.131592065 0.139465492 SPY-T 0.087115856 0.141277609 ggQ T 75%/25% 0.75 0.25 Expected return portfolio Std. Deviation portfolio 0.134005215 0.180793109 SPY-QQg 0.162851638 0.117250619 SPY-T 0.045052796 0.047741352 ggQ T 25%/75% 0.25 0.75 Expected return portfolio Std. Deviation portfolio 0.045052796 0.192724839

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