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Finding B The Northern Peninsula Stock market has only two listed stocks. Big minin and Shallow mining. The market portfolio is composed of 40%

 


Finding B The Northern Peninsula Stock market has only two listed stocks. Big minin and Shallow mining. The market portfolio is composed of 40% Big Mining and 60% Shallow Mining. Using the data below, find the for each of the two stocks. Expected return Return standard deviation Covariance of returns Market portfolio NORTHERN PENINSULA STOCK MARKET Shallow Mining Weight of Big Mining Weight of Shallow Mining Expected return, E(M) Variance, M Standard deviation, GM BeigMining BshallowMining Big Mining 15% 25% 0.05 25% 40%

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