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Intro The following table shows historical end-of-week adjusted close prices (including dividends) for two stocks. A B 1 Week Stock A Stock B 2 0
Intro The following table shows historical end-of-week adjusted close prices (including dividends) for two stocks. A B 1 Week Stock A Stock B 2 0 32.85 2,615 3 1 33.49 2,557 2,588 4 2 36.42 5 3 35.79 2,652 6 4 33.54 2,705 7 5 35.84 2,631 8 6 37.61 2,729 9 7 33.5 2,668 10 8 33.83 2,766 11 9 34.71 2,919 12 10 35.88 2,882 Part 1 - Attempt 1/10 for 8.3 pts. Calculate the weekly returns. What is standard deviation of weekly returns for stock B? 4+ decimals Submit For all remaining parts, create a portfolio of 70% stock A and 30% stock B. If you rebalanced such a portfolio every week to keep the weights at 0.7/0.3, what is the holding period return over the 10 weeks for the portfolio? 3+ decimals Submit Part 3 i Attempt 1/10 for 8.3 pts. What is the standard deviation of weekly returns for such a portfolio if you rebalanced every week? 4+ decimals Submit Part 4 8 Attempt 1/10 for 8.3 pts. Still assume that you create a portfolio of 70% stock A and 30% stock B. However, after the initial allocation, you do not rebalance the portfolio at all. What is the holding period return over the 10 weeks for the portfolio? 3+ decimals Submit 1 Attempt 1/10 for 8.3 pts. Part 5 What is the standard deviation of weekly returns for such a portfolio if you do not rebalance at all
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