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Expected Return Standard deviation Stock A 13% 5% Stock B 16% 6.50% Correlation 0.8 0.8 If you hold equal weights of both stocks in your
Expected Return | Standard deviation | |
Stock A | 13% | 5% |
Stock B | 16% | 6.50% |
Correlation | 0.8 | 0.8 |
If you hold equal weights of both stocks in your portfolio:
1- Calculate the portfolio return. (Show your work)
2- Calculate the portfolio std. (Show your work)
3- Calculate Coefficient of Variation of Stock A. (Show your work)
4- Calculate Coefficient of Variation of Stock B. (Show your work)
5- If the correlation is -0.8, Calculate the portfolio expected return and standard deviation. (Show your work)
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