Question
Stock Alpha and Stock Beta have following historical returns. Mr. Andersion invested 60% of his wealth in Stock Alpha and 40% of his wealth to
Stock Alpha and Stock Beta have following historical returns. Mr. Andersion invested 60% of his wealth in Stock Alpha and 40% of his wealth to stock Beta.
Year | Stock Alpha | Stock Beta |
2015 | 4% | 7% |
2016 | 9% | 2% |
2017 | 1% | 7% |
2018 | -3% | 3% |
2019 | 8% | -4%
|
Calculate the realized rate of return on the portfolio have been in each year from 2015 to 2019.
Calculate the average return on the portfolio have been during the period.
Calculate the Covariance of returns of stock Alpha and stock Beta and Correlation between the returns of two stocks.
Calculate the standard deviations of returns for each stock and for the portfolio.
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