Question
Stocks A and B have the following returns: Stock A Stock B 1 0.09 0.06 2 0.06 0.01 3 0.15 0.06 4 5 -0.01
Stocks A and B have the following returns: Stock A Stock B 1 0.09 0.06 2 0.06 0.01 3 0.15 0.06 4 5 -0.01 0.07 0.03 -0.01 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 0.46, what is the expected return and standard deviation of a portfolio of 78% stock A and 22% stock B? a. What are the expected returns of the two stocks? The expected return for stock A is 1. (Round to three decimal places.) Activate Windows
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Understanding Basic Statistics
Authors: Charles Henry Brase, Corrinne Pellillo Brase
6th Edition
978-1133525097, 1133525091, 1111827028, 978-1133110316, 1133110312, 978-1111827021
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