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I will thumbs up the solution, thanks a. If you purchased stock A at the end of year 5 and sold it at the end

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a. If you purchased stock A at the end of year 5 and sold it at the end of year 9, what cumulative return would you generate?

b. Calculate standard deviation of returns for stock B.

c. If correlation between the returns is -.301, calculate the covariance of returns.

d. Consider the following portfolio: 65% is invested in stock A and 35% invested in stock B. Calculate standard deviation of this portfolio.

Closing Prices Stock A Stock B Year 1 33.75 112.09 Year 2 31.69 115.74 Year 3 29.17 115.89 Year 4 25.64 120.75 Year 5 27.97 125.12 Year 6 30.36 127.46 Year 7 32.74 110.49 111.26 Year 8 35.09 Year 9 31.89 106.99 Year 10 33.56 105.17 Year 11 30.12 108.25

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