Question
portfolio theory - please show all workings so i can learn table year stock A stock B 2007 8 12 2008 21 27 2009 -27
portfolio theory - please show all workings so i can learn
table
year stock A stock B
2007 8 12
2008 21 27
2009 -27 -32
2010 11 18
2011 18 24
b. calculate the variance of stock a
d. calculate the variance for stock B
e. calculate the standard deviation of the expected return for stock b
f calculate the expected return for a portfolio of stock A 60% and stock b 40% weightings
g. if the distribution of the expected returns is approximately normal, calculate the range of expected returns for each stock (ie+or - one std dev about the mean expected return?
h. what do the results for the expected returns and standard deviation over the 5 year sample for each stock tell you
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