Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help find the standard deviations Consider the following two stocks. robabilities (Pi) Stock A 9% 196 12% tock B ecessiOn -37% 11% 73-27% 896

Please help find the standard deviations

image text in transcribed

image text in transcribed

Consider the following two stocks. robabilities (Pi) Stock "A 9% 196 12% tock "B" ecessiOn -37% 11% 73-27% 896 The portfolio weights for stocks "A" and "B" are 0.15 and 0.85, respectively. What are the expected returns of stock "A" and "B"? Enter your answers as a percentage. Do not put the percent sign in your answers. Round your answers to 2 DECIMAL PLACES E(ra)0.37 Correct response: .37 E(rb)6.73 Correct response: 6.73 Using the correct answers from the previous question, what are the standard deviations of stocks "A" and "B? Enter your answers as a percentage. Do not put the percent sign in your answers. Round your answers to 2 DECIMAL PLACES. SDa Number SD-Number

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

Step: 3

blur-text-image

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

Trading Strategies For Capital Markets

Authors: Joseph Benning

1st Edition

0071726233

More Books

Students also viewed these Finance questions