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QUESTION 17 Using the data in the following table, Stock -10% 2006 5% -5% 24 9 Stock D 219 796 30% -3 -89 259 a)

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QUESTION 17 Using the data in the following table, Stock -10% 2006 5% -5% 24 9 Stock D 219 796 30% -3 -89 259 a) Estimate the average return and volatility for each stock. b) Calculate the expected return and the volatility (standard deviation) of a portfolio that is 70% invested in stock A and 30% invested in stock B. Hint you have to find the correlation coefficient by yourself. What is your comments on the results in a and b

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