q21

q22

A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 19%, while stock Bhas a standard deviation of return of 23%. Stock A comprises 55% of the portfolio, while stock B comprises 45% of the portfolio. If the variance of return on the portfolio is .038, the correlation coefficient between the returns on A and Bis. .757 589 .715 .740 The price of a stock is $52 at the beginning of the year and $47 at the end of the year. If the stock paid a $2 dividend and inflation was 3%, what is the real holding period return for the year? -8.51% -10.45% -5.77% 3.6496