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Historical returns of two stocks (Blandy and Gourmange), and the entire market are given below. 1) Estiamte the risk and expected returns for the
Historical returns of two stocks (Blandy and Gourmange), and the entire market are given below. 1) Estiamte the risk and expected returns for the following: Only Blandy, 2Only Gourmange and Portfolio of Blandy 75% and Gourmange 25%. 2) What is the correlation between these two assets. What's its importance? Year Mean Standard dev 1 2 3 4 5 6 7 8 9 10 Correlation (B, G) Blandy Gourmange Market Portfolio (75/25) 26% 30% 15% 7% -14% 18% -15% -22% 2% -14% -18% 10% 42% 26% 30% -10% -32% -3% 28% 38% 6.4% 25.2% 47% -54% 15% 7% -28% 40% 17% -23% -4% 75% 9.2% 38.6% 8.0% 20.1%
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To estimate the risk and expected returns for Blandy Gourmange and the portfolio we can use the historical returns data provided Lets calculate them s...Get Instant Access to Expert-Tailored Solutions
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