Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

The table below shows the returns of two stocks, A and B, over a period of 6 months. If you invest 60% of your capital

The table below shows the returns of two stocks, A and B, over a period of 6 months. If you invest 60% of your capital in Stock A, and the rest in Stock B, what would be the standard deviation of the returns of your portfolio, over the same period?

Month Stock A Stock B
Jan 1.0% 1.7%
Feb 1.2% -0.8%
Mar 0.5% -0.6%
Apr 0.2% 2.2%
May 1.1% -0.8%
June -0.2% 1.6%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions