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Given the returns of two stocks J and K in the table below over the next 4 years. Find the expected return and standard deviation
Given the returns of two stocks J and K in the table below over the next 4 years. Find the expected return and standard deviation of holding a portfolio of 40% of stock J and 60% in stock K over the next 4 years:
Stock J | Stock K | |
2020 | 10% | 9% |
2021 | 12% | 8% |
2022 | 13% | 10% |
2023 | 15% | 11% |
A.
14.3% and 2.02%
B.
10.6% and 1.16%
C.
10.6% and 1.79%
D.
10.7% and 1.34%
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