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Hello, I would like only questions 3-6 to be answered I want you to show me each of the stages of working out you did.
Hello, I would like only questions 3-6 to be answered
I want you to show me each of the stages of working out you did. So I can do them manually on my calculator, and I would like you to space it out between the question so I can see clearly the solution for each of the questions. thank you
Insert Draw Design References View SECURITY WARNING Macros have been disabled Layout Mallings Review Enable Content 223456789101112 13 14 151 17:18 Risk and return You are considering an investment in the stock market and have identified three potential stocks, they are Crown (ASX: CWN), Tencent (HKG: 0700) and Commonwealth Bank (ASX: CBA). The historical prices for the past 10 years are shown in the table below. Assume no dividend is distributed during this period. I Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Crown 7.76 8.57 8.09 11.59 16.68 13.61 12.27 11.4 13.25 11.95 Tencent 29.04 40.40 37.94 54.28 108.70 132 144.90 204.40 463.60 346 Commonwealth (CBA) 53.63 52.15 50.39 64.10 73.83 88.85 78.67 81.66 78.87 69.91 1. (6 marks) Calculate the return and risk (standard deviation) of each stock, 2. (3 marks) Explain the relation (positive or negative) between risk and return based on your answers in part (1) Trish Australia) 3. (6 marks) Calculate the correlation coefficient between (a) Crown and Tencent and (b) Tencent and CBA. Focus O Type here to search 1 0.1080- w 100% I ENG 4:50 PM 20/11/20 E 3. (6 marks) Calculate the correlation coefficient between (a) Crown and Tencent and (b) Tencent and CBA. 4. (3 marks) Calculate the expected (annual) return and standard deviation if you owned a portfolio consisting of 50% in Crown and 50% in Tencent. 5. (3 marks) Calculate the expected (annual) return and standard deviation if you owned a portfolio consisting of 40% in CBA and 60% in Tencent. 6. (4 marks) Which portfolio (parts 4 or 5) provides better diversification? Explain your answer(s). Focus BU ENC OStep by Step Solution
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