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If Tom invests $1MM in each of these stocks, what is the risk of the portfolio? If Tom invests 75% of $2MM in Cinplat Inc.
- If Tom invests $1MM in each of these stocks, what is the risk of the portfolio?
- If Tom invests 75% of $2MM in Cinplat Inc. and 25% in Solvay Inc., what is the risk of the portfolio?
| Year | Market (S&P 500) | Cinplat Inc. | Solvay Inc. |
| 1 | 36% | 28% | 55% |
| 2 | 17% | 16% | -45% |
| 3 | 17% | -12% | 17% |
| 4 | -29% | -18% | 8% |
| 5 | -16% | 4% | -30% |
| 6 | 10% | -14% | 48% |
| 7 | 25% | 42% | 16% |
| 8 | -11% | 28% | -20% |
| 9 | -5% | -28% | -5% |
| 10 | 40% | 32% | 65% |
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To determine the risk of a portfolio we typically calculate the portfolios standard deviation which serves as a measure of risk or volatility For both ...
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Mission Ready Finances Proven Principles To Guide Your Story To Financial Freedom
Authors: Marco Parzych
1st Edition
173321531X, 978-1733215312
