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Stock X has an expected return of 10% and a standard deviation of 30%. Stock Y has an expected return of 14% and a standard
| Stock X has an expected return of 10% and a standard deviation of 30%. Stock Y has an expected return of 14% and a standard deviation of 40%. | |||||||||
| The correlation coefficient between Stocks And Y is 0.3. | |||||||||
| Stock X has a beta of .9 and Stock Y has a beta of 1.20. Portfolio is invested 40% in Stock X and 60% in Stock Y. | |||||||||
| Calculate the expected return of the portfolio. | |||||||||
| Calculate the standard deviation of the portfolio. | |||||||||
| Calculate the beta of the portfolio | |||||||||
| Is your portfolio less risky or more risky than the market? Explain. | |||||||||
| Will your portfolio likely outperform or underperform the market in a period when stocks are rapidly falling in value? Why? | |||||||||
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HBR Guide To Finance Basics For Managers
Authors: Harvard Business Review
1st Edition
1422187306, 978-1422187302
