Question
Problem 01: Calculate individual stock average, standard deviation, variance, portfolio variance Given are the daily returns for two stocks X and Y for five business
Problem 01: Calculate individual stock average, standard deviation, variance, portfolio variance
Given are the daily returns for two stocks X and Y for five business days in last week. If you have 1000 dollars to invest and you are considering to invest 600 dollars in stock X and 400 dollars in stock Y. Calculate the following
A. average stock return for individual stocks
B. variance and standard deviations for the individual stocks
C. calculate the covariance and correlation between the two stocks
D. weights of the stocks in the portfolio
E. portfolio expected return
F. portfolio standard deviation and portfolio variance
Day | Stock X (return in %) | Stock Y (return in %) |
1 | 10 | - 3 |
2 | 6 | 5 |
3 | 8 | 7 |
4 | 1 | 4 |
5 | -5 | 2 |
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