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The holding Period Rate of Return (HPR) of stocks A, B, C for the past five years are: Base on the information provided above, calculate
The holding Period Rate of Return (HPR) of stocks A, B, C for the past five years are: Base on the information provided above, calculate the expected rate of return and standard deviation for each stock. Calculate coefficient of variation of each stock. If you only want to buy one stock, which one will you select? Why? Determine the correlation coefficient of returns of Stocks A and B stocks A and C and stocks B and C. Which portfolio do you recommend? Why? If you invest equally (50% each) on the stocks in your selected portfolio, calculate expected rate of return and standard deviation of this portfolio. Is this portfolio better than individual stock? Why
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