Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please answer A, B, C. Stocks A and B have the following returns: Stock A Stock B 1 0.08 0.06 2 0.04 0.03 3 0.12
Please answer A, B, C.
Stocks A and B have the following returns:
Stock A | Stock B | | |||||||||||
1 | 0.08 | 0.06 | |||||||||||
2 | 0.04 | 0.03 | |||||||||||
3 | 0.12 | 0.04 | |||||||||||
4 | 0.03 | 0.02 | |||||||||||
5 | 0.08 | 0.02 |
a. What are the expected returns of the two stocks?
b. What are the standard deviations of the returns of the two stocks?
c. If their correlation is 0.45, what is the expected return and standard deviation of a portfolio of 55% stock A and 45% stock B?
Score: 0 of 1pt P 12-7 (similar to Stocks A and B have the following returns 0.08 0.04 0 12 -0 03 0.06 0.03 0.04 0 02 -0 02 0 08 a. What are the expected reburns of the two stocks? c. W their correlation is 0 45, what is the expected return and standand a. What are the expected retums of the two stocks? The expected returntor stock A is (Round to tree decimal places ) Type hero tose-chStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started