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Stock A Stock B Mean 8.00% 11.00% Variance 1.71% 2.67% Standard deviation 13.08% 16.34% Covariance 0.20% Correlation 0.0936 Proportion of stocok A in portfolio Portfolio
Stock A | Stock B | ||
Mean | 8.00% | 11.00% | |
Variance | 1.71% | 2.67% | |
Standard deviation | 13.08% | 16.34% | |
Covariance | 0.20% | ||
Correlation | 0.0936 | ||
Proportion of stocok A in portfolio | Portfolio Variance | Portfolio standard deviation | Portfolio mean |
0% | 2.67% | 16.34% | 11.00% |
10% | 2.22% | 14.89% | 10.70% |
20% | 1.84% | 13.57% | 10.40% |
30% | 1.55% | 12.43% | 10.10% |
40% | 1.33% | 11.54% | 9.80% |
50% | 1.20% | 10.93% | 9.50% |
60% | 1.14% | 10.67% | 9.20% |
70% | 1.16% | 10.78% | 8.90% |
80% | 1.27% | 11.25% | 8.60% |
90% | 1.45% | 12.03% | 8.30% |
100% | 1.71% | 13.08% | 8.00% |
Draw a plot for the relationship between risk and return.
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