Answered step by step
Verified Expert Solution
Link Copied!

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. image text in transcribed

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-ch

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Foundations In Personal Finance

Authors: Dave Ramsey

College Edition

1936948001, 978-1936948000

More Books

Students also viewed these Finance questions

Question

Find the x-and y-intercepts. Then graph each equation. 3 4 y = x

Answered: 1 week ago

Question

=+What kind of question would you ask to encourage their response?

Answered: 1 week ago

Question

=+Does it keep the visitor reading?

Answered: 1 week ago