Question
Stock A Stock B 1 0.09 0.07 2 0.06 0.04 3 0.15 0.06 4 0.04 0.02 5 0.08 0.04 a. What are the expected returns
Stock A Stock B 1 0.09 0.07 2 0.06 0.04 3 0.15 0.06 4 0.04 0.02 5 0.08 0.04 a. What are the expected returns of the two stocks? b. What are the standard deviations of the returns of the two stocks? c. If their correlation is 0.48, what is the expected return and standard deviation of a portfolio of 74% stock A and 26% stock B?
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Introduction To Derivatives And Risk Management
Authors: Robert Brooks, Don M Chance, Roberts Brooks
8th Edition
0324601212, 9780324601213
