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Question 4 Harry Potter is trying to understand how the returns on shares could vary depending on the state of economic growth. Use the following
Question 4 Harry Potter is trying to understand how the returns on shares could vary depending on the state of economic growth. Use the following information about the share of Gryffindor Plc and Slytherin Plc to make the calculations: Required: a) Calculate the expected return and standard deviation for each share. b) What are the variance and the correlation coefficient between returns on Gryffindor and returns on Slytherin? c) Determine a portfolio expected return and standard deviation if 75% of a fund is devoted to Gryffindor and the remainder 25% to Slytherin
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