Two stocks (A and B) have a covariance of 23.When combined in equal proportions into portfolio Y, the variance of the portfolio is 30.25.Stock A
Two stocks (A and B) have a covariance of 23.When combined in equal proportions into portfolio Y, the variance of the portfolio is 30.25.Stock A has a variance twice that of Stock B.Another portfolio (X) has an expected return of 17% and a variance of 50.
Additional Information
The expected return on the market is 15% and the risk free rate is 7%
Covariance (A,Market) = 22 and Covariance (B,Market) = 15.5
Variance of the Market is 15
What isVariance of Stock A?
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Authors: Debra Gross, Frank Akaiwa, Karleen Nordquist
1st edition
978-1285099149, 9781285963969, 1285099141, 1285963962, 978-1285715346
