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Mean 8.00% 11.00% Variance 1.71% 2.67% Standard deviation 13.08% 16.34% Covariance 0.20% Correlation 0.09360 Proportion of stocok A in portfolio Portfolio Variance Portfolio standard deviation
Mean | 8.00% | 11.00% | |||
Variance | 1.71% | 2.67% | |||
Standard deviation | 13.08% | 16.34% | |||
Covariance | 0.20% | ||||
Correlation | 0.09360 | ||||
Proportion of stocok A in portfolio | Portfolio Variance | Portfolio standard deviation | Portfolio mean | ||
0% | 2.67% | ||||
10% | |||||
20% | |||||
30% | |||||
40% | |||||
50% | |||||
60% | |||||
70% | |||||
80% | |||||
90% | |||||
100% | |||||
1) Given the data, figure out the correlation between two stocks.
2) Fill out the table for the mean, variance, and standard deviation for the portfolio
3) Draw a plot for the relationship between risk and return, as shown below.
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