Question
Please answer both, thank you! IBM has a standard deviation of .20 and an expected return of . 10. GM has a standard deviation of
Please answer both, thank you!
IBM has a standard deviation of .20 and an expected return of . 10. GM has a standard deviation of .18 and an expected return of .08. The correlation between the two stocks is .25. Suppose you form a portfolio that includes 45 of the value invested in IBM and .55 is invested in GM? What is the expected return of the portfolio? What is the standard deviation of the portfolio?
Using the data below, plot the returns to Plum & Co., versus the returns on the market (Plum & Co. is the y-axis, market is the x-axis) for each monthly data coordinate. What is a good guess at the beta of Plum & Co.?
Date | Plum & Co Return | Market Return |
Jan 2021 | 6.0% | 5.0% |
Feb 2021 | 12.0% | 7.0% |
March 2021 | -10.0% | -5.0% |
April 2021 | 1.5% | 1.0% |
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