Question
Stocks Y and Z have the following returns between 2014 and 2018: YearStock Y's ReturnStock Z's Return 2014-18%-15% 201533%22% 201615%30.5% 2017-1%-8% i. Calculate the average
Stocks Y and Z have the following returns between 2014 and 2018:
YearStock Y's ReturnStock Z's Return
2014-18%-15%
201533%22%
201615%30.5%
2017-1%-8%
i. Calculate the average return for each stock.
ii.Calculate the standard deviation of returns for each stock.
iii.Calculate the coefficient of variation for each stock.
iv.Assume you held a portfolio consisting of 60% of Stock Y and 40% of Stock Z. Calculate the average return of the portfolio during this period.
v.Calculate the standard deviation of the portfolio if the correlation between Stock Y and Stock Z is 10%.
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