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please solve using excel EE eBook The stock of Jones Trucking is expected to return 12 percent annually with a standard deviation of 8 percent.
please solve using excel
EE eBook The stock of Jones Trucking is expected to return 12 percent annually with a standard deviation of 8 percent. The stock of Bush Steel Mills is expected to return 12 percent annually with a standard deviation of 14 percent. The correlation between the returns from the two securities has been estimated to be +0.3. The beta of the Jones stock is 0.8, and the beta of the Bush stock is 1.1. The risk free rate of return is expected to be 5 | percent, and the expected return on the market portfolio is 12 percent. The current dividend for Jones is $5. The current dividend for Bush is $7. a. What is the expected return from a portfolio containing the two securities ir 30 percent of your wealth is invested in Jones and 70 percent is Invested in Bush? Round your answer to one decimal place. % b. What is the expected standard deviation of the portfolio of the two stocks? Round your answer to two decimal places. % c. Which stock is the better buy in the current market Round your answers to one decimal place Required return (Jones): Required return (Bush): The Select stock is the better buy because the expected return is Select than the required retum 90 Step by Step Solution
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