Question
Stocks A and B have the following returns: Stock A Stock B 1 0.09 0.04 2 0.06 0.03 3 0.13 0.04 4 0.03 0.02 5
Stocks A and B have the following returns:
| Stock A | Stock B |
| |
| 1 | 0.09 | 0.04 | |
| 2 | 0.06 | 0.03 | |
| 3 | 0.13 | 0.04 | |
| 4 | 0.03 | 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 0.43, what is the expected return and standard deviation of a portfolio of 64% stock A and 36%
stock B?
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Industrializing Financial Services With DevOps
Authors: Spyridon Maniotis
1st Edition
1804614343, 978-1804614341
