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The returns of the market and the individual assets A and B are reported as follows: RA 2013 Rm 2% 5% RE 4% 8% 2014
The returns of the market and the individual assets A and B are reported as follows: RA 2013 Rm 2% 5% RE 4% 8% 2014 49% 2015 2016 2017 3% 8% 6% 10% Cov (RA,Rm) = 4; Cov (RB, Rm=9.98 et Cov (RA,RB)=5.12 1. Calculate the expected return and the variance of the market and the individual assets A and B; 2. Calculate the volatility (B) of stocks A and B ; 3. Compare the volatility (B) of stocks A et B to the volatility of the market; 4. If you invest 60% in the stock A and 40% in the stock B. Calculate Ep, op and Bp
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