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QUESTION 9 Use the following information to answer the next three questions. Month Stock A Return Stock B Return .12 -.06 1/2013 2/2013 .05 -.03
QUESTION 9 Use the following information to answer the next three questions. Month Stock A Return Stock B Return .12 -.06 1/2013 2/2013 .05 -.03 .25 .02 3/2013 4/2013 .05 .16 Find the covariance between stocks A and B. Round intermediate steps and your final answer to four decimals. 0.0037 0.005 O-005 O-0037 QUESTION 10 Assume that you want to combine stocks A and B in a portfolio with the lowest possible risk. Find the weight of stock A in your portfolio. Round intermediate calculations to four decimal places. O .8006 .1994 . 1746 0.8254
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