Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 6 2. pus Consider the following annual closing prices of stock A and stock B. Date Year Stock A Prices (in $) Stock B

image text in transcribed

image text in transcribed

Question 6 2. pus Consider the following annual closing prices of stock A and stock B. Date Year Stock A Prices (in $) Stock B Prices (in %) 109 461 343 em DOS SNS 16 Year 17 18 If you had invested 13 percent of your total investment on stock A and 87 percent on stock B at the beginning of the period, what would be the historical standard deviation of the portfolio consisting of these two stocks? D Year Year 7 9 Year 8 18 Year 9 11 Year 10 12 Year 11 13 Year 12 14 Year 13 15 Year 14 16 Year 15 480 411 289 433 386 18 If you had invested 13 percent of your total investment on stock A and 87 percent on stock B at the beginning of the period, what would be the historical standard deviation of the portfolio consisting of these two stocks? 25.37% 15.22% 20.3% 5.07%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Everything Guide To Day Trading

Authors: David Borman

1st Edition

1440506213, 978-1440506215

More Books

Students also viewed these Finance questions

Question

(1) An example of negative feedback that you received badly.

Answered: 1 week ago

Question

How well do you gain participation and involvement from the group?

Answered: 1 week ago

Question

Who is the client?

Answered: 1 week ago