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Stock A Stock B Portfolio Year 1 4% -3% 0.5% Year 2 -4% 3% -0.5% Year 3 10% 10% 10.0% Year 4 15% 9% 12.0%
| Stock A | Stock B | Portfolio | |
| Year 1 | 4% | -3% | 0.5% |
| Year 2 | -4% | 3% | -0.5% |
| Year 3 | 10% | 10% | 10.0% |
| Year 4 | 15% | 9% | 12.0% |
| Year 5 | 6% | 12% | 9.0% |
| Mean | 6.20% | 6.20% | 6.20% |
| St. Dev | 7.09% | 6.14% | 5.77% |
| CV | 1.143 | 0.99 | 0.93 |
| Correlation between A & B | 0.152 |
| Further suppose you have 3 investment options a) hold only Stock A, b) hold only Stock B or c) hold a portfolio consisting of 50% of each stock. From a risk perspective only, which would you choose? Why? |
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The Fraud Audit Responding To The Risk Of Fraud In Core Business Systems
Authors: Leonard W. Vona
1st Edition
0470647264, 978-0470647264
