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Please Help! Thank you! 228 Problem 7 229 You have gathered data for the past 10 years on the stock returns for Stock Y, Stock
Please Help! Thank you!
228 Problem 7 229 You have gathered data for the past 10 years on the stock returns for Stock Y, Stock Z and the stock market. 230 231 232 233 STOCK RETURNS 234 Year Y Z Market Portfolio 235 1 0.25 -0.25 0.2 236 2 0.35 -0.3 0.25 237 3 0.2 0.1 0.3 238 4 0.35 0.2 0.25 239 5 -0.5 0.25 0.25 240 6 -0.3 0.4 0.35 241 7 0.4 0.5 0.5 242 8 0.25 0.4 0.3 243 9 0.6 0.35 0.45 244 10 0.45 0.6 0.55 245 246 247 average return 248 standard deviation 249 correlation 250 beta 263 Problem 7 264 Calculate the following: 265 a. Average returns for the returns for Stock Y and Stock Z and market returns. 266 b. Standard deviation for the market returns, returns for Stock Y and Stock Z 267 c.The portfolio for each year if the portfolio is 65% stock Y and 35% stock Z. 268 d. the standard deviation of the portfolio. 269 e. the correlation of the market to stock Y. 270 f. the correlation of the market to stock Z. 271 g. the correlation of the market to the portfolio 272 h. Beta of returns for stock Y. 273 i. Beta of returns for Stock Z. 274 j. Beta of portfolioStep by Step Solution
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